Bitcoin Briefly Crashes Below $90,000: Is a Market-Wide Sales Spiral Looming?
November 18, 2025 – Financial markets are on edge this Tuesday as Bitcoin experienced a sharp, albeit temporary, dip below the $90,000 mark, exacerbating existing anxieties and triggering a broader sell-off. The sudden move has sent ripples through global stock indices and sparked concerns about a potential cascade of liquidations, particularly within the burgeoning Bitcoin ETF sector. This is a developing story, and Archyde is committed to bringing you the latest updates as they unfold.
Bitcoin’s Rapid Descent and Billions Wiped Out
The world’s leading cryptocurrency briefly plummeted as much as 2.8% before partially recovering to around $91,400. However, the damage is already done. Since mid-October, Bitcoin has shed a staggering $330-$340 billion in market capitalization. This reversal of fortune follows a peak above $126,000 in October, a reminder of the extreme volatility inherent in the crypto space. It’s a stark contrast to the bullish sentiment that fueled its earlier gains, and a wake-up call for investors.
Global Markets Feel the Heat
The Bitcoin sell-off isn’t happening in a vacuum. European and Asian stock indices have fallen by over one percent, and US stock futures are pointing towards further losses. This interconnectedness highlights the growing influence of the crypto market on traditional finance. Joseph Zhang of Fidelity International, speaking to Bloomberg, noted that the declines across asset classes are, in part, a spillover effect from the crypto downturn. This isn’t just a crypto story; it’s a market story.
The Fed’s Role and Macroeconomic Concerns
Underlying the market turbulence is growing uncertainty surrounding the US Federal Reserve’s interest rate policy. The probability of a rate cut in December has now fallen below 50%, according to Bloomberg, injecting a dose of caution into investor sentiment. Shiliang Tang of Monarq Asset Management explained to Bloomberg that the declining likelihood of a rate cut is directly contributing to the downward pressure on crypto markets. Interest rate expectations are a powerful force, and their shifting sands are impacting risk appetite across the board.
ETFs Under Pressure: $2.8 Billion in Outflows
A significant driver of the current weakness is the outflow of capital from Bitcoin Spot ETFs. These ETFs, which have attracted over $25 billion in inflows this year and currently hold around $169 billion in assets, have experienced net outflows of approximately $2.8 billion in November alone. This is a dramatic reversal from the tens of billions of dollars that flowed into these funds following Donald Trump’s election last November. The ETF market, once a source of strength for Bitcoin, is now becoming a headwind.
Liquidation Cascade and Margin Calls
The market is also grappling with the fallout from earlier liquidations. Over $19 billion worth of positions were wiped out in early October, erasing over $1 trillion in market value. In the past 24 hours alone, approximately $950 million in long and short positions have been liquidated, according to data from Coinglass. This creates a dangerous feedback loop: falling prices trigger margin calls, forcing leveraged investors to sell assets, which further depresses prices. Companies holding Bitcoin on their balance sheets, like Strategy by Michael Saylor, are now facing increased scrutiny and may be forced to re-evaluate their positions.
Understanding Bitcoin’s Volatility: A Historical Perspective
Bitcoin’s history is punctuated by periods of dramatic price swings. From its humble beginnings to its current status as a multi-trillion dollar asset class, volatility has been a constant companion. Understanding this inherent risk is crucial for any investor considering exposure to Bitcoin. While the long-term potential remains a subject of debate, the current downturn serves as a potent reminder that past performance is not indicative of future results. Diversification and careful risk management are paramount.
The situation remains fluid, and Archyde will continue to provide comprehensive coverage of this evolving story. Stay tuned for further updates and expert analysis as we navigate this period of market uncertainty. For more in-depth financial news and analysis, explore the resources available on Archyde.com and stay informed.
