Bitcoin News Today: Fed's Data Delays and Policy Shifts Send Bitcoin Plummeting

Bitcoin plunged below $86,000 on November 21, 2025, marking its lowest level since April 2025, as uncertainty over Federal Reserve rate cuts intensified following delays in critical U.S. jobs data. The Bureau of Labor Statistics (BLS) announced it would not release October employment figures due to a government shutdown, with November's report delayed until after the Fed's December policy meeting. This created a "data black hole," leaving traders without key economic signals to gauge the central bank's next move. As a result, the probability of a December rate cut plummeted from nearly 100% in mid-October to just 33% as of late November, triggering a broad sell-off in cryptocurrencies and equities.

The Fed's pivot from dovish to hawkish rhetoric began in late October when Chairman Jerome Powell tempered market expectations for aggressive easing. Over the following weeks, internal divisions within the central bank became evident, with officials like Governor Christopher Waller signaling caution amid inflation concerns. By November, the CME FedWatch tool showed a 47% chance of a 25-basis-point cut in December, down from 62% a week earlier. This shift, coupled with the absence of labor data, eroded confidence in a near-term policy pivot, directly impacting risk assets like Bitcoin. The cryptocurrency had surged to $126,000 in early October but fell over 28% in the following months, erasing all its 2025 gains.

The sell-off extended across the crypto market. Ethereum dropped 7.44%, XRP fell 6.67%, and Solana lost 7.15% in 24 hours. Analysts attributed the downturn to a combination of macroeconomic uncertainty, thinning liquidity, and large-scale selling by institutional investors. A Bitcoin whale reportedly offloaded 11,000 BTC, exacerbating downward momentum. "The crypto market is consolidating with Bitcoin trading near $86,500 as macroeconomic uncertainty increases," said Edul Patel, CEO of Mudrex. On-chain data also revealed 154,664 liquidated positions in a single day, with $443 million in total losses.

Market sentiment worsened as the Fed's delayed data coincided with a broader risk-off environment. The S&P 500 hovered near flatline territory, while tech stocks, including Nvidia, faced profit-taking pressures. In crypto, the sell-off mirrored traditional markets, with Bitcoin's price closely tied to risk appetite. Noted Haider Rafique of OKX. The cryptocurrency's breakdown below $90,000—a level it held for seven months—further amplified fears of a deeper correction.

Options markets reflected heightened bearishness, with a 50% probability assigned to Bitcoin finishing 2025 below $90,000. Traders purchased over 13,800 put contracts at the $85,000 strike price to hedge against further declines. Volatility surged across the board, with 30-day implied volatility jumping to 49% from 41% in two weeks. "The BTC price is very tenuous and skewed to the downside," said Sean Dawson of Derive.xyz, highlighting the lack of catalysts to reignite bullish momentum.

The turmoil also exposed vulnerabilities in passive Bitcoin strategies. MicroStrategy (MSTR), which has invested $1.5 billion in Bitcoin this year, saw its stock plummet 60% since July. The company's reliance on price appreciation without yield-generating mechanisms left it exposed to market volatility. Similarly, exchange-traded funds like IBIT faced outflows, with a record $300 million exiting the product on November 18. Abu Dhabi's tripling of IBIT holdings in Q3, however, suggests some institutional demand persists despite the selloff.

Looking ahead, analysts remain divided. While some view the current levels as a buying opportunity, others warn of further declines to $75,000 before a rebound. The Fed's final policy decision in December and the delayed jobs data will be critical. "The next few days will determine whether this is a temporary dip or a deeper reset," said OKX's Rafique. For now, Bitcoin's fate remains tethered to the Fed's path—and the data it has yet to release.