It was a bloodbath for Bitcoin investors on Friday, as a tidal wave of selling sent the world’s largest cryptocurrency crashing to its lowest level since May. In a savage early-morning episode on November 14, Bitcoin’s price fell briefly under the $96,000 level, breaking below the $2 trillion mark, and that $120 billion in value were erased in just 24 hours.
This abrupt decline was not simply an erratic move; rather, it was an emotionally driven and denominated exit by major institutional players. The data tells a grim story of flagging confidence, a market with too many risky bets, and increasing panic that the party may be ending.
The Great Institutional Exit
The principal cause of the market crash is thought to be a large withdrawal of institutional funds. On Wednesday, November 13, U.S. spot Bitcoin ETFs—the investment vehicles that brought mainstream money into the asset—recorded a staggering $870 million in net outflows.
This withdrawal was the second-largest single-day redemption in the history of the funds. The selling was led by Grayscale’s Mini BTC, which saw $318 million pulled from the fund. BlackRock’s iShares Bitcoin Trust was not far behind, bleeding $257 million, while Fidelity’s fund lost $120 million. This day of panic selling was not an isolated event; it brought the three-week outflow total from these funds to a painful $2.64 billion.
A $1.1 Billion Leverage Wipeout
As the price floor gave way, the market’s high-risk traders were decimated. The sudden plunge initiated a chain reaction of forced-selling that is known as liquidations, which wiped out more than $1.1 billion in leveraged positions across the entirety of the crypto market. The pain was felt most by Bitcoin traders who faced over $500 million in BTC positions that were automatically liquidated. Notably, over 90% of those liquidated positions were “longs”—traders who borrowed money to bet that the price would rise. When the price went the wrong way, their positions were wiped out, adding more selling pressure to an already collapsing market.
Old Hands Are Cashing Out
Adding to the panic, on-chain data shows that some of Bitcoin’s most dedicated investors are heading for the exits. Long-term holders—wallets that have held Bitcoin for over 155 days—have been quietly selling. Since October, these “old hands” have offloaded nearly 390,000 BTC.
This selling pressure was confirmed by a spike in exchange inflows. In the past day alone, a net total of 12,000 BTC moved onto trading platforms, the largest such move since March. When large amounts of Bitcoin move to exchanges, it is typically a sign that investors are preparing to sell.
Macro Fears Haunt the Market
This crypto-specific panic is unfolding against a backdrop of serious macroeconomic anxiety. Market strategists say the outflows reflect a broader “risk-off” sentiment as hopes for a year-end boost from the Federal Reserve are crumbling.
Expectations for a December interest rate cut, which were seen as a near-certainty just weeks ago, have collapsed. This, combined with lingering uncertainty from the recent 43-day government shutdown that delayed key economic data, has investors fleeing from assets perceived as risky, including both tech stocks and “digital gold.”
Where Is the Bottom?
With the price in freefall, analysts are scrambling to find the next line of defense. The crash has shattered several key technical thresholds, including the 200-day exponential moving average—a key long-term trend indicator—at $110,470.
According to market analyst Ali Martinez, the current situation is “NOT good.” He notes that Bitcoin is now desperately testing a critical support zone between $96,500 and $97,000. If that fails to hold, the next major support levels sit much lower, at $82,045 and $66,900. Indicators of momentum are still weak, with the daily RSI indicating the asset is deeply oversold with no evidence of a reversal yet.
