Last Updated on November 21, 2025
The global crypto market entered another turbulent stretch as the bitcoin price drop accelerated sharply on Friday, sending the world’s largest cryptocurrency below $86,000 for the first time since April. The downturn caps nearly a month of persistent weakness, with the market struggling to attract new buyers and the strong momentum from earlier in the year evaporating.
By 6:15 a.m. UTC time, Bitcoin traded at $85,871, down 7.3% over 24 hours. Ether also retreated steeply to $2,793, a decline of 8.1%. According to CoinGecko, the total market capitalization of the crypto sector slid nearly 6% to just above $3 trillion in one day.
Why the Bitcoin Price Drop Happened Now
Analysts point to multiple forces converging at once:
1. Whale-driven selloffs
Large holders have offloaded over $20 billion worth of crypto since September, according to CoinShares research head James Butterfill. This selling pressure reinforces market fears and triggers additional liquidations, creating a self-feeding downward cycle.
2. The historical four-year cycle narrative
Many institutional traders still follow the classic post-halving pattern: strong rally → overheating → corrective phase. The recent correction fits this model, contributing to broad sell activity.
3. Macroeconomic uncertainty
Confidence on Wall Street weakened after U.S. indices fell sharply on Thursday. Hope that the Federal Reserve might cut rates in December has faded, pushing investors away from riskier assets such as cryptocurrencies.
Dow Jones dropped 386 points, S&P 500 slid 1.56%, and Nasdaq fell 2.16%, erasing Nvidia-driven optimism from earlier in the week.
4. Liquidity shock still lingering
The huge October wipeout — when $19 billion in leveraged positions were liquidated in a single session — continues to weigh on market depth. Liquidity remains thin on major exchanges, amplifying every downward move.
Crypto Traders Eye Key Support Levels
The repeated bitcoin price drop has options traders now targeting the critical $85,000 support level. Breaking below it could trigger fresh liquidations and open the door to even deeper corrections.
This drop also coincides with renewed anxiety about the global economy. Wintermute’s Jake Ostrowski explains that markets are trapped in a “data vacuum,” leaving investors unsure how the Federal Reserve will adjust policy next. This uncertainty suppresses risk appetite, especially in speculative assets like crypto.
Interesting Background Facts on Bitcoin Volatility
- Historically, Bitcoin has experienced corrections of 25–40% even during major bull markets.
- Despite short-term volatility, long-term holders still control over half of all circulating Bitcoin.
- During past cycles, the largest drops often occurred 6–12 months after a halving, matching the current 2025 timeframe.
- Bitcoin’s drawdowns tend to intensify when U.S. tech stocks face synchronized declines — a pattern repeating now.
Featured Image by Christopher Muschitz from Pixabay