Bitcoin News Today: Leverage and ETF Exodus Fuel "Great Crypto Crash of 2025"

Bitcoin Plunges Toward $80,000 as "Great Crypto Crash of 2025" Unfolds

Bitcoin's price slid to as low as $80,600 on November 21, 2025, marking its worst monthly performance since the 2022 crypto collapse, with losses exceeding $1.2 trillion in market value over six weeks. The selloff, dubbed the "Great Crypto Crash of 2025", has been fueled by ETF outflows, leveraged trading liquidations, and a global flight from risk assets. Ethereum and other major altcoins have also plummeted, with ETH hitting a four-month low below $2,700.

The collapse follows a euphoric rally that pushed Bitcoin to a record $126,000 in early October, driven by spot ETF inflows and institutional adoption. However, the narrative has reversed sharply. Bloomberg estimates that Bitcoin's November losses of 23% have erased gains from the post-ETF surge, while CoinGecko data shows the total crypto market cap now stands at less than $2.8 trillion.

Structural factors are amplifying the downturn. Leverage built during the Q3-Q4 rally has triggered cascading liquidations, with over $19 billion in leveraged positions wiped out in a single October day. Meanwhile, U.S. spot Bitcoin ETFs have seen $3.8 billion in November outflows, reflecting institutional caution. Open interest in Bitcoin futures has dropped 35% from October's $94 billion peak, signaling reduced speculative activity.

Macro risks are compounding the crisis. Fading hopes for Federal Reserve rate cuts and concerns over overvalued AI stocks have driven a broad risk-off mood. Tony Sycamore, a market analyst at IG, warned that Bitcoin's role as a risk appetite barometer suggests "things could start to get really, really ugly".

On-chain data indicates short-term holders are capitulating, with metrics like the STH-SOPR ratio falling below 1.0-a classic bottoming signal. However, analysts remain divided. Ki Young Ju of CryptoQuant argues that institutional holders, including companies like MicroStrategy and governments, have removed millions of BTC from circulation, potentially preventing a deeper decline. Conversely, BitMEX founder Arthur Hayes predicts further weakness to $80,000–$85,000 unless the Fed injects liquidity.

The selloff has also impacted crypto-linked equities. MicroStrategy's stock has dropped to one-year lows, while Japan's Metaplanet has lost 80% from its June peak. Miners and ETF providers like Coinbase face prolonged declines, underscoring the systemic nature of the downturn.

Despite the carnage, some see a path to recovery. Binance's Richard Teng called the pullback a "healthy consolidation," noting Bitcoin remains above 2024 levels. Peter Brandt, a veteran trader, suggested the current crash could be "the best thing for Bitcoin," setting the stage for a potential $200,000 rally by decade's end.

Key levels to watch include the $80,000 zone, where Citi analysts note many ETF holders are concentrated. Continued ETF outflows or macro shocks could extend the slump, while stabilization in open interest or institutional buying might signal a bottom.