Bitcoin News Today: Digital Asset Firms Bleed $4.5B as Bitcoin Plunges Toward Critical Support

Bitcoin's descent toward critical support levels has intensified concerns of a broader market collapse, with analysts pointing to fading demand and structural vulnerabilities in the crypto ecosystem. The world's largest cryptocurrency fell below $90,000 on Nov. 18—the first time in seven months it has traded at such levels—amid a 28% retreat from its October peak of $126,000. The selloff has triggered nearly $1.5 trillion in market-value erosion since October, with liquidations exceeding $2 billion in the past week alone. Cryptoquant, a leading blockchain analytics firm, has flagged the decline as a potential inflection point, warning that institutional outflows and a lack of buying pressure could push prices toward a key $40,000 support level according to data.

The rout has exposed fragility in corporate crypto treasuries, where firms holding large Bitcoin and Ethereum positions are grappling with massive unrealized losses. Publicly traded digital asset treasury companies (DATs), once flush with capital during the 2024 bull run, now face a 50% drawdown in market value since July. Strategy Inc., the most prominent Bitcoin holder with 649,870 BTC, has seen its stock plummet 35% in the past month, despite maintaining a $6.1 billion unrealized profit on its holdings. Bitmine, the largest Ethereum-focused DAT, holds 3.56 million ETH but now sits on a $4.52 billion paper loss as ether trades near multi-month lows according to reports. Meanwhile, Forward Industries, which invested heavily in Solana, faces a $711 million loss on its 6.83 million SOL holdings after the token's 32% drop according to analysis.

The bleeding extends to exchange-traded funds. U.S.-listed Bitcoin ETFs have hemorrhaged $3.79 billion this month, with BlackRock's IBIT alone shedding $1.26 billion in outflows. JPMorgan analysts warn that regulatory uncertainty—such as potential exclusion of crypto-heavy stocks from major indices like MSCI—could exacerbate the pain for firms like Strategy and FG Nexus, which have already resorted to selling crypto assets to fund buybacks. The Coinglass Fear & Greed Index hit an extreme pessimism level, its lowest since the 2022 crypto crash.

Regulatory and institutional developments have done little to stabilize the market. While the U.S. Comptroller of the Currency recently allowed banks to hold crypto on balance sheets, and Fidelity's Solana ETF launch signaled institutional interest, these moves have failed to offset macroeconomic headwinds. The Federal Reserve's delayed rate-cut timeline and broader equity market volatility have deepened risk-off sentiment. Mastercard's partnership with Polygon to simplify crypto transactions and Japan's tax advantages for DATs offer glimmers of hope, but they remain overshadowed by the ongoing liquidation spiral.

Analysts remain divided on the path forward. While some, like Tony Sycamore of IG Australia, suggest the market may test Michael Saylor's Strategy Inc. for signs of stabilization, others argue the selling is driven by "OGs" cashing out after years of holding. "The convergence of forced liquidations and structural ETF selling has pushed the market into a particularly vulnerable state," said Chris Newhouse of Ergonia, a DeFi research firm. With Bitcoin logging its longest streak of consecutive lower lows since 2010, the coming weeks will be critical in determining whether this is a cyclical correction or the start of a deeper bear market.