Why Bitcoin Has Plunged Over the Past Few Days
Bitcoin has cratered sharply in recent days, briefly slipping below the $90,000 mark and erasing its entire year-to-date gains. The selloff reflects a convergence of macro pressures, technical breakdowns, and investor positioning shifts — all hitting the market at once.
Below is a breakdown of the key drivers behind the sudden and severe downturn.
Retail Capitulation After Bitcoin Broke Below $100,000
The first major domino fell when Bitcoin broke below the psychologically important $100,000 level, triggering a wave of panic selling among short‑term retail holders.
According to analysis from CryptoQuant — highlighted by Yahoo Finance — short‑term holders dumped 148,241 BTC on November 14 at an average price near $96,853, far below their cost basis. This was a large-scale loss event, suggesting widespread capitulation rather than profit‑taking
(Yahoo Finance).
When major psychological floors collapse, retail investors tend to exit en masse. That dynamic accelerated the initial downdraft.
Nearly $2.9 Billion in Crypto ETF Outflows
The selling pressure intensified as institutional money headed for the exits.
Morningstar reported that global crypto ETFs saw $2.9 billion in net outflows in just one week — on pace to become the largest monthly withdrawal on record. The iShares Bitcoin Trust alone saw $1.2 billion in redemptions in the first 17 days of November
(Morningstar).
ETF flows have become one of the most important sentiment indicators in the Bitcoin market. When they reverse sharply, the spot market often follows.
Cascading Liquidations and Leverage Unwinds
As prices fell, leveraged traders were forced to unwind positions, fueling cascading liquidations. This is a familiar pattern in crypto downturns.
Morningstar notes that the initial spark can be traced back to October 10, when a “Black Friday” event saw more than $19 billion in crypto liquidations. As Bitcoin’s drop accelerated in November, many heavily leveraged positions were flushed out again, adding momentum to the decline
(Morningstar).