Bitcoin News Today: "Regulators and Institutions Reshape Crypto as Bitcoin Crashes Below $90K"

Bitcoin's price slid below $90,000 on November 18, marking its lowest level since April 2025 and erasing all gains for the year. The cryptocurrency, down over 26% from its October peak of $126,000, has drawn fears of further declines to $85,000 or $80,000 levels. Analysts attribute the drop to a mix of factors, including uncertainty over U.S. interest rate cuts, weak equity market sentiment, and large holders reducing their positions. The selloff has also impacted major altcoins, with Ethereum, XRP, Binance Coin, and Solana all slipping by 3–5.6% in the past 24 hours.

The correction has pushed Bitcoin below its 2025 realized price of $103,227, meaning the average investor in the year is now facing a 13% loss. While the current drop mirrors the April 2025 correction in percentage terms-falling from $109,000 to $76,000, it has lasted only 43 days compared to the 80-day decline earlier in the year. Market analysts note that historically, such dips often precede strong recoveries, with key support levels at $89,500 and $93,500 seen as critical for stabilizing prices.

Amid the volatility, Cboe Global Markets announced the launch of "continuous futures" for Bitcoin and Ethereum on December 15, offering long-term, perpetual-style exposure under U.S. regulatory oversight. The products, designed for institutional and advanced retail traders, will have 10-year expirations and daily cash adjustments to align with spot prices, eliminating the need for frequent rollovers. Rob Hocking, Cboe's global head of derivatives, emphasized the move as a response to growing demand for regulated crypto derivatives, stating the structure allows for "streamlined portfolio and risk management". The exchange's new contracts will be cash-settled and cleared through Cboe Clear U.S., a CFTC-regulated entity.

Meanwhile, Japan's Financial Services Agency (FSA) is pushing forward with a major overhaul of crypto regulations, including reclassifying 105 cryptocurrencies as financial products under the Financial Instruments and Exchange Act. The reform aims to reduce the tax rate on crypto gains from a steep 55% to a flat 20%, aligning it with stock market rates. The FSA also plans to enforce new disclosure requirements for exchanges listing these tokens and introduce insider trading rules to prevent abuses. These changes, expected to be submitted to Japan's Diet in 2026, are part of a broader effort to position the country as a Web3 hub while addressing investor concerns over high tax burdens.

The market's turbulence has also triggered significant liquidations. Bitcoin's drop to $93,000 on November 16 led to $510 million in 24-hour liquidations, with the largest single loss amounting to $29.98 million on Hyperliquid. The Crypto Fear and Greed Index plummeted to 10, signaling extreme fear among traders. Analysts like KillaXBT warn that a break below $85,000 could invalidate bullish recovery scenarios, though historical data suggests a 36% probability of a near-term bottom forming after the weekend's bearish setup.

As Bitcoin grapples with short-term volatility, the introduction of regulated perpetual-style futures and Japan's regulatory shifts highlight the evolving landscape for institutional participation and investor protection. Whether these developments catalyze a rebound or deepen the correction remains to be seen, but they underscore the growing integration of crypto into traditional financial frameworks.