Bitcoin News Today: Institutions Shift $421M to Solana as Bitcoin Tumbles Below $81K Amid Fed Uncertainty

Bitcoin tumbled below $81,000 on November 21, 2025, as a confluence of macroeconomic uncertainties, deteriorating liquidity conditions, and leveraged liquidations exacerbated a months-long selloff in the crypto market. The decline accelerated after the asset breached key Fibonacci support levels and the $100,000 psychological threshold, with analysts pointing to Federal Reserve policy ambiguity and institutional outflows as critical drivers. The drop coincided with a broader crypto market contraction, reducing total capitalization below $2.8 trillion amid a $120 billion single-day loss.

Macro Pressure Intensifies

The U.S. Federal Reserve's shifting rate-cut expectations played a pivotal role in Bitcoin's collapse. Traders had priced in aggressive monetary easing following months of inflation moderation, but recent data including a stronger-than-expected September jobs report and delayed policy guidance dimmed those hopes. Sara Devereux, Vanguard's bond chief, warned that the Fed may only cut rates one or two more times in 2026, a stark reversal from earlier expectations of four reductions. This uncertainty triggered a risk-off sentiment, with Bitcoin, as a high-beta asset, bearing the brunt of the selloff.

Compounding the issue, U.S. equity markets also wavered, with tech stocks retreating after a prolonged rally. The interplay between crypto and traditional markets highlighted Bitcoin's role as a proxy for risk appetite, with investors fleeing volatile assets amid fears of prolonged liquidity tightness.

Crypto-Specific Catalysts

Within the crypto ecosystem, spot Bitcoin ETFs recorded over $255 million in outflows on November 17, signaling institutional disengagement. These outflows, coupled with a surge in leveraged liquidations, exceeding $1.3 billion in a single week, further weakened market resilience. A flash crash on Hyperliquid on November 21 underscored the fragility: Bitcoin plummeted $3,000 in under a minute, triggering $36.78 million in liquidations before rebounding. Such events amplified panic, with traders questioning the stability of leveraged positions and exchange infrastructure.

Capital Rotation to Solana

While Bitcoin and Ethereum ETFs faced massive redemptions, Solana (SOL) emerged as an unexpected beneficiary. Institutional investors funneled $421 million into Solana ETFs since their October 31 launch, with Bitwise's BSOL fund alone swelling to $388.1 million. Analysts attribute this shift to Solana's lower valuation relative to its long-term potential and its robust on-chain activity. Meanwhile, Bitcoin and Ethereum ETFs saw combined outflows of $3.25 billion over five trading days, reflecting a broader loss of confidence.

Path Forward Uncertain

Bitcoin now faces critical support at $83,500–$85,000, where a potential rebound or further decline hinges on macroeconomic clarity and liquidity restoration. The market remains in a bearish phase, with the Fear and Greed Index registering an extreme fear level of 15. However, some investors see value in the downturn, with projects like Bitcoin Munari launching presales at $0.10 to capitalize on renewed interest in alternative crypto assets.

As the Fed's policy trajectory and institutional positioning remain in flux, Bitcoin's near-term outlook remains precarious. Market participants are bracing for further volatility, with quantum computing risks and regulatory shifts adding to the uncertainty.

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