Bitcoin Plunges Below $90K - Erasing 2025 Gains Amid Market Turmoil

New York – November 18, 2025  Bitcoin tumbled below the psychologically significant $90,000 mark late Monday, capping off a brutal five-week selloff that has wiped out all of the digital asset's gains for the year. The world's largest cryptocurrency by market capitalization last traded at $89,420 on major exchanges like Coinbase, marking its lowest level since February and a staggering 25% decline from its October 16 all-time high of $126,250.

The rapid descent, which accelerated over the past 24 hours with $116.8 million in leveraged liquidations—mostly from bullish long positions—has fueled fears of a broader crypto winter, even as some analysts urge calm, pointing to historical mid-cycle corrections rather than the onset of a full bear market.

The slide began in earnest mid-October, as Bitcoin's meteoric rise—fueled by institutional inflows and post-halving optimism—encountered headwinds from macroeconomic pressures. Key triggers include a prolonged U.S. government shutdown that drained an estimated $85 billion from GDP, stalling ETF inflows that had pumped $61.9 billion into the market earlier in 2025. Last week alone saw $870 million in outflows from spot Bitcoin ETFs, exacerbating the downturn. Compounding the pain, a technical "death cross"—where the 50-day moving average crossed below the 200-day—emerged on charts, a bearish signal that has historically preceded deeper corrections.

Broader market dynamics are also at play. Bitcoin's correlation to the S&P 500 has tightened amid a tech stock rout, with declining confidence in Federal Reserve rate cuts—now priced at just 35% for December—pushing investors toward risk-off assets. Inflation data released Thursday showed a tick higher to 3.1% year-over-year, dashing hopes for aggressive easing and amplifying liquidity crunches. "The Fed minutes were a gut punch," noted CoinDCX Research in a Monday note. "Weak ETF flows and rising volatility are turning Bitcoin from a hedge into a casualty of the macro storm."

The fallout has rippled across the crypto ecosystem. Ethereum dipped below $3,000 briefly, while Solana and Cardano shed 8% and 5%, respectively. Yet panic selling dominated, as young holders offloaded 148,000 BTC in recent days, per on-chain data from Glassnode, handing profits to long-term whales who have remained steadfast.

Wall Street's reaction was swift and unforgiving. Crypto-linked stocks like MicroStrategy and Coinbase plunged 10% and 7% in pre-market trading, while traditional markets teetered on the edge of correction territory. Polymarket bettors now peg the odds of Bitcoin closing November below $90,000 at a chilling 77%, up from 64% just days ago. "Extreme fear" readings on the Crypto Fear & Greed Index hit 25, the lowest since April, signaling capitulation but also potential capitulation-fueled rebounds.

Looking ahead, eyes are on $86,000 as the next critical support, with a break potentially targeting $80,000 or even April's $76,000 low. A reclaim of $94,000 could spark a relief rally toward $100,000.