Why Bitcoin is Plunging Today: Price Poised for Largest Monthly Decline in Three Years

A wave of selling has swept across the crypto market, pushing Bitcoin toward its weakest monthly performance in more than two years and erasing the gains it built earlier this year. Among the major factors pulling down the top crypto is a weakening institutional sentiment.

Digital assets meet tradfi in London at the fmls25

The renewed turbulence has shaken investor confidence, sparked rapid liquidations, and revived questions about how far the retreat could go as risk appetite fades across global markets.

Bitcoin Slips to Seven-Month Low as Liquidations Mount

Bitcoin fell as much as 13% on Friday to around $80,760, its lowest level since mid-April, when it plunged to $76,273, according to CoinMarketCap.

On the other hand, Ether has not been spared as bears dominate the crypto space. The second-largest crypto slid was trading at $2,733 at the time of publication, representing an 8% and 12% decline in the daily and weekly chart, respectively.

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Other large tokens including Solana, XRP, BNB and Dogecoin posted declines of between 8% and 11%. CoinMarketCap data shows that the total market capitalization dropped 7% to $2.8 trillion.

The pullback has wiped out roughly a quarter of Bitcoin Bitcoin While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that Read this Term’s value this month, marking its steepest monthly decline since June 2022. That period followed the collapse of TerraUSD and the eventual fall of FTX, which sent shockwaves across the industry.

“This correction is not only erasing any 2025 year-to-date gains but also took off critical long-term supports, including the major bull market trendline dating back to mid-October 2023 and the Fibonacci retracement level,” commented Deribit Chief Commercial Officer Jean-David Pequignot.

“It is fueling legitimate fears of a deeper bearish trend, with the next downside levels to watch at $83–$85k as a potential confirmation zone, and even $74.5k if trend breakdown is cemented.” Still, some market analysts remain optimistic. Futures market trader Peter Brandt, commanding a following of over 800k on X, believes the trend could change for better.

Full disclosure folks
Of my maximum ever Bitcoin position I still own 40%, at a price 1/20th of Saylor's avg buy.
I am a long-term bull on Bitcoin. This dumping is the best thing that could happen to Bitcoin. The next bull market in Bitcoin should take us to $200,000 or so. That…

— Peter Brandt (@PeterLBrandt) November 21, 2025

Why is Price Falling? ETF Outflows and Institutional Hesitation

Trading sentiment has weakened as institutions pull back exposure on risk assets. Twelve US-listed spot Bitcoin ETFs recorded $903 million in net redemptions on Thursday, marking their second-largest one-day outflow since launching in January 2024, according to Farside Investors.

Keep reading: Why Bitcoin Is Falling Below $90K? Death Cross Triggers BTC Price Prediction to $74K

Meanwhile, a decade-old wallet labeled “Owen Gunden” contributed to selling pressure after transferring and offloading around $1.3 billion in Bitcoin since late October, according to blockchain analytics firm Arkham Intelligence.

OWEN GUNDEN HAS NOW SOLD ALL OF HIS $1.3 BILLION BITCOIN

Owen Gunden was an OG Bitcoin whale who held BTC since 2011. Since late October he has sold 11K BTC worth $1.3 billion.

He has just transferred $230M of BTC to Kraken, marking his final sale. pic.twitter.com/m0gQWCHrxZ

— Arkham (@arkham) November 20, 2025

Weakness in broader markets has intensified the decline. US equities Equities Equities can be characterized as stocks or shares in a company that investors can buy or sell. When you buy a stock, you are in essence buying an equity, becoming a partial owner of shares in a specific company or fund.However, equities do not pay a fixed interest rate, and as such are not considered guaranteed income. As such, equity markets are often associated with risk.When a company issues bonds, it’s taking loans from buyers. When a company offers shares, on the other hand, it’s selling pa Equities can be characterized as stocks or shares in a company that investors can buy or sell. When you buy a stock, you are in essence buying an equity, becoming a partial owner of shares in a specific company or fund.However, equities do not pay a fixed interest rate, and as such are not considered guaranteed income. As such, equity markets are often associated with risk.When a company issues bonds, it’s taking loans from buyers. When a company offers shares, on the other hand, it’s selling pa Read this Term reversed Thursday’s early gains despite optimism surrounding AI-related earnings, with concerns about stretched tech valuations and diminishing odds of a Federal Reserve rate cut next month weighing on sentiment.

Technical Levels Break as Bitcoin Loses Momentum

Technically, Bitcoin has slipped below both its 50-day and 200-day moving averages, a sign of weakening trend support. Analysts warn that a further drop toward $75,000 is possible if risk sentiment deteriorates and tech valuations face more pressure.

The selloff has also hit crypto-related equities. Shares of Hong Kong-listed spot Bitcoin ETFs fell close to 7% on Friday. Public companies that stockpiled digital assets on their balance sheets earlier this year have also come under pressure as token prices slide.

Bitcoin’s surge to a record above $120,000 in early October, driven by regulatory improvements and institutional enthusiasm, now appears distant. With global markets turning cautious and volatility rising, investors are preparing for the possibility of more turbulence before stability returns.