Bitcoin News Today: Hawkish Fed and Regulatory Shifts Send Crypto Markets into Tailspin

Bitcoin tumbled toward $82,605 on Nov. 21, 2025, as crypto markets faced a $2 billion liquidation wave and total valuations fell below $2.8 trillion, extending a 23% monthly decline-the worst since June 2022. The selloff was driven by weak U.S. unemployment data, fading hopes for Federal Reserve rate cuts, and DeFi exploits, according to CoinGlass data. Over $1.9 billion in long positions were liquidated within four hours, while Bitcoin ETFs recorded $903 million in outflows, their second-largest daily redemption since launch.

The broader market turmoil spilled into equities, with the S&P 500 and Nasdaq Composite dropping 1.56% and 2.15%, respectively, as tech stocks like Nvidia-whose accounts receivable surged to $33.4 billion-spooked investors according to The Block. Bitcoin's decline mirrored a broader risk-off sentiment, with Asia stocks also plunging amid renewed tech sell-offs and AI valuation fears according to Seeking Alpha.

The Federal Reserve's hawkish stance exacerbated the downturn. Cleveland Fed President Beth Hammack warned against rate cuts despite a mixed September jobs report, emphasizing inflation control over labor market support. "Monetary policy should remain somewhat restrictive to guide inflation back to 2%," she stated, signaling a prolonged tight policy environment according to Market Minute. This stance contrasted with market expectations for a December rate cut, which had briefly risen after the delayed September jobs data showed 119,000 new jobs but a 4.4% unemployment rate .

Regulatory shifts also weighed on crypto markets. The SEC's enforcement actions under Chair Paul Atkins dropped 30% year-on-year, with the agency shelving key crypto cases and shifting focus to establishing a "rational" digital asset framework according to CoinTelegraph. Meanwhile, spot Bitcoin ETFs continued to hemorrhage assets, with BlackRock's IBIT and Fidelity's FBTC leading outflows as institutional investors trimmed exposure amid volatile conditions according to The Block.

Despite pro-crypto policy rhetoric and rising institutional adoption, Bitcoin's 30% drop from its October peak highlighted structural vulnerabilities. A $19 billion liquidation event on Oct. 10 had already erased $1.5 trillion from crypto valuations, and leveraged positions remained under pressure. Analysts noted that extreme fear often precedes buying opportunities, though timing remains critical. "Cumulative ETF inflows still sit at $57.4 billion, and total net assets are $113 billion-about 6.5% of Bitcoin's market cap," said BTC Markets' Rachael Lucas. According to The Block, "Institutions haven't abandoned the asset class; they're just navigating a correction phase."

The market's path forward hinges on the Fed's inflation fight and regulatory clarity. With open interest in Bitcoin futures down 35% from October's peak and macroeconomic data offering mixed signals, investors brace for a prolonged period of volatility. As Hammack reiterated, "The priority remains price stability-even if that means a slower pace of economic growth" according to Market Minute.