Introduction

Bitcoin's value plunged below the critical $91,000 threshold in the last few hours, a violent move that wiped out all of its 2025 gains and triggered a fresh wave of panic across the digital asset market. The sudden collapse below this key psychological and technical level confirms a deepening correction that has seen over a trillion dollars vanish from the global crypto market capitalization in just over a month.

What

On November 17, 2025, Bitcoin (BTC) experienced a sharp price rejection, falling over 4% to trade below $91,000, marking its lowest point in nearly seven months and erasing a year's worth of accumulation in a matter of days.

Why

The catalyst for this sharp downturn is multi-faceted. A primary driver is the persistent outflow from U.S. Bitcoin ETFs, which has signaled waning institutional appetite in the short term. This has been compounded by thin market liquidity, which exaggerates price movements. Furthermore, a broader risk-off sentiment, fueled by a slump in technology stocks and shifting expectations for central bank rate cuts, has renewed crypto's correlation with traditional markets, dragging it lower. The breach of the 50-week moving average served as a technical trigger, unleashing a cascade of automated sell orders and liquidations.

Impact

The immediate impact is a spike in fear and forced selling. The Crypto Fear & Greed Index has plummeted to 11, a reading of "Extreme Fear," as over-leveraged traders are liquidated. In the medium term, the market is now testing the crucial $90,000 support zone; a failure to hold this level could open the door to a much deeper and prolonged bear market. Long-term, the severity of this crash is forcing a re-evaluation of the popular "four-year cycle" theory, with many investors questioning if the market structure has fundamentally changed.

Action Steps

For investors and traders, the immediate focus should be on risk management and key data points. Monitor the $90,000 support level closely, as a decisive break below could signal further downside. Keep a close watch on daily Bitcoin ETF flow data for any signs of a reversal in institutional sentiment. Finally, pay attention to macroeconomic announcements, particularly those related to inflation and central bank policy, as they are currently exerting significant influence on risk assets like Bitcoin.

Analyst Opinions

  • QCP Capital: Analysts at the Singapore-based crypto trading firm noted the gravity of the situation, stating, “The break below the 50-week moving average... [has] cemented a more cautious tone across digital asset markets.” They highlighted that the narrative of the four-year cycle nearing its end is adding to the prevailing bearish sentiment, creating a fragile market picture.
  • Oliver Knight & Omkar Godbole (CoinDesk): These market analysts identified macroeconomic pressures as a key accelerator for the decline. They pointed to “shifting Fed rate-cut expectations and thin liquidity” as primary factors that confirmed a broader downtrend, causing Bitcoin and Ether to sink to multi-month lows as liquidity dries up.