Bitcoin Price Crash Erases 2025 Gains as Sell-Off Intensifies

The cryptocurrency world has watched with apprehension as Bitcoin, the digital asset that once seemed unstoppable, erased all its 2025 gains in a matter of days. On Tuesday, the price of Bitcoin plunged below $90,000, marking its lowest point since April and officially throwing the asset into bear market territory. According to Business Insider, this latest sell-off wipes out the coin’s year-to-date rally, with Bitcoin now down 2% for 2025 after having been up as much as 35% just weeks earlier.

Bitcoin’s decline comes as part of a wider risk-off move in global financial markets. Investors are shedding risky assets, with large outflows from Bitcoin exchange-traded funds (ETFs) and mounting concerns about the Federal Reserve’s interest rate policy. This shift in sentiment has not spared other cryptocurrencies: Ethereum, the second-largest digital asset, fell below $3,000 for the first time in five months and is down 8% this year.

Technical Breakdown and Bearish Sentiment

The technical picture for Bitcoin has grown increasingly bleak. The coin broke its 50-week moving average at the end of last week—a level watched closely by market strategists. Alex Kuptsikevich, chief market analyst at FxPro, told Business Insider, “The dip below the 50-week moving average triggered sellers, confirming the breakdown of the bullish trend that had lasted for the previous two years. Now, the working scenario appears to be a chance for BTC to dip to its 200-week moving average.”

Technical analysis published by Bitcoin Magazine highlights additional pressure: after falling below $94,290, Bitcoin erased all its gains for the year. The break below the $96,000 weekly support signaled strong bearish momentum. With immediate support only near the $83,000–$84,000 range and resistance mounting above $94,000, analysts warn that any bounce may be short-lived. Patterns such as the broadening wedge offer little comfort for bulls, and the possibility of new cycle lows looms.

Fairlead Strategies founder Katie Stockton noted that Bitcoin’s drop below a key support level of $93,200 is critical. If the price closes below this threshold for two consecutive weeks, she warns, it would mark “a concerning breakdown.” Stockton added that current sentiment is as fearful as it was at the April low, and her firm remains bearish on Bitcoin for the intermediate term.

Macro Risks: Fed Rate Cuts, Stock Sell-Offs, and AI Market Turbulence

Beyond technical signals, macroeconomic factors are driving the sell-off. Investors are uncertain about the Federal Reserve’s rate-cut trajectory, especially as the U.S. government shutdown has left October’s economic data unreleased. Carolane De Palmas, an analyst at ActivTrades, explained that this information vacuum itself is bearish for Bitcoin, which relies on liquidity expectations. “Until the Fed’s path becomes clearer, Bitcoin is likely to remain vulnerable to continued volatility and downside pressure,” she wrote.

Tech and equity markets are also experiencing significant declines, mirroring the drop in crypto assets. The Nasdaq-100 is down 4% this month, while the S&P 500, Germany’s DAX, and Japan’s Nikkei 225 have all registered notable losses. Companies closely tied to crypto are suffering: MicroStrategy (MSTR), heavily exposed to Bitcoin, has dropped 27% in November, though it saw a brief 8% rebound. Robinhood Markets and Coinbase Global are down 21% and 23%, respectively.

The AI sector, which fueled much of this year’s tech enthusiasm, is showing cracks as well. Nvidia, once the poster child for the AI boom, dropped 9% after its market valuation soared to $4 trillion earlier in 2025. Alphabet CEO Sundar Pichai warned of “irrationality” in AI markets, and Klarna’s CEO voiced concerns about heavy investments in infrastructure without careful consideration.

Bitcoin’s Supply, Institutional Moves, and the Road Ahead

As of November 18, 2025, nearly 19.95 million Bitcoins have been mined—over 95% of the asset’s maximum supply. New coins are issued through mining, but the pace slows every four years due to halving events, with the final fractions expected to be mined around 2140. These supply dynamics, while fundamental to Bitcoin’s value proposition, have done little to prevent the recent price slide.

Outflows from Bitcoin ETFs have accelerated since November 12, totaling about $1.8 billion according to CoinGlass data. Rumors that Michael Saylor’s Strategy sold some of its Bitcoin holdings have further intensified the drawdown, as traditional finance managers reduce exposure and focus on broader macro risks—including tariffs, the AI bubble, and stock volatility.

Despite the downturn, some players remain bullish. El Salvador, which has made headlines for its aggressive Bitcoin accumulation, recently purchased 1,091 BTC, bringing its total holdings to 7,474.37 BTC valued at approximately $688 million.

Short-Term Bounce or Prolonged Bear Market?

After briefly dipping below $90,000, Bitcoin staged a modest recovery to trade near $93,700 by Tuesday morning, according to Bitcoin Magazine. However, the price remains 1% below its 7-day high and 5% above its 7-day low, with a market cap of $1.86 trillion and trading volume at $124 billion. The current technical and macro environment suggests that any recovery may be short-lived, with bears firmly in control and overhead resistance making a sustained rally improbable.

While some analysts speculate about a late cycle peak in early 2026, the prevailing market weakness and strong resistance levels indicate that a meaningful rally could be out of reach for now. The four-year cycle high appears to have already passed, and the road ahead is fraught with uncertainty.

The recent Bitcoin price crash underscores how vulnerable even the most established digital assets remain to macroeconomic shocks and shifting investor sentiment. While a rebound is possible, technical breakdowns and persistent outflows suggest caution is warranted, and recovery may hinge on clearer signals from global markets and central banks.

Thought you’d like to know

What caused the recent Bitcoin price crash?

The crash was driven by several factors. Large outflows from Bitcoin ETFs and concerns about Federal Reserve interest rate policy created selling pressure. A broader sell-off in tech stocks also contributed to the decline.

Has Bitcoin entered a bear market?

Many analysts believe it has. The price broke key technical support levels, including the 50-week moving average. This breakdown is often interpreted as a confirmation of a bearish trend shift for the asset.

How far could the Bitcoin price fall?

Some technical analysis points to the $83,000-$84,000 range as the next major support level. If that fails, a drop toward the 200-week moving average is a possibility that market watchers are considering.

Are other cryptocurrencies affected?

Yes, the sell-off is widespread across the crypto market. Ethereum, the second-largest cryptocurrency, fell below $3,000. It is now down 8% for the year, reflecting the broader negative sentiment.

Is now a good time to buy Bitcoin?

Current market sentiment is largely fearful, and analysts warn of continued volatility. While prices are lower, the prevailing technical and macro outlook suggests caution, as further downside remains possible.

Trusted Sources

Business Insider, Bitcoin Magazine, Reuters, CoinGlass, ActivTrades, FxPro.