Bitcoin News Today: Institutional Exodus and $2B Liquidations Signal Deepening Crypto Crisis

Bitcoin's sharp decline has intensified fears of a prolonged bear market, with the cryptocurrency plunging below $84,000 and triggering nearly $2 billion in liquidations in recent days. The price has fallen over 30% from its October all-time high of $126,223, wiping out more than $1.5 trillion in market value and pushing the total crypto market cap below $2.8 trillion. Analysts warn that further losses could follow, with some predicting a potential drop to $80,000 or lower on Hyperliquid amid market volatility.

The selloff has been exacerbated by macroeconomic uncertainty, particularly around Federal Reserve policy. Traders are increasingly skeptical about the central bank's ability to deliver rate cuts in December, a shift that has spooked risk assets. "Bitcoin's pullback is part of a broader shift in risk sentiment," said Haider Rafique, global managing partner at OKX. The cryptocurrency has also struggled to recover after a liquidity crunch in October, when a $19 billion liquidation event erased significant gains.

Technical indicators underscore the depth of the downturn. Bitcoin's price has now fallen below the 2025 realized price of $103,227, meaning the average investor is sitting on a 13% loss. A "death cross" pattern-where the 50-day moving average crosses below the 200-day line-has also emerged, historically signaling prolonged declines. Meanwhile, open interest in perpetual futures contracts has dropped 35% from October's peak, reflecting retreating participation.

Institutional outflows have compounded the pressure. U.S. spot Bitcoin ETFs recorded $903 million in net redemptions on November 20, the second-largest daily withdrawal since their launch. BlackRock's IBIT alone saw $355.5 million exit, highlighting waning confidence among large investors. This exodus contrasts with historical patterns during previous dips, where institutions often stepped in to stabilize the market.

The sell-off has also exposed vulnerabilities in leveraged positions. On November 21, Bitcoin experienced a flash crash on Hyperliquid, plummeting $3,000 in under a minute and liquidating $36.78 million in a single position. Over $1.9 billion in long liquidations were recorded in the past 24 hours, with Ethereum, Solana, and BNB also suffering double-digit losses.

Despite the turmoil, some experts caution against declaring a full-blown "crypto winter." Louis LaValle of Frontier Investments argues that the current decline differs from past collapses, noting that Bitcoin remains a "mature asset class" with growing institutional adoption. However, others warn that further weakness could trigger a self-fulfilling panic. "If Bitcoin breaches $80,000 support, the market could spiral into a deeper reset," said Timothy Misir of BRN.

The path forward remains uncertain. While dip-buyers are eyeing potential entry points, the broader market is grappling with thinning order books and fading optimism. With macroeconomic risks persisting and leveraged positions still vulnerable, Bitcoin's next move could determine whether this correction evolves into a prolonged bear market.