Bitcoin fell to April 2025 levels, reflecting a massive outflow of capital from risky assets. On Thursday, November 20, its price fell to $86,270, reaching its lowest level in more than six months.
BTC’s decline is compounded by uncertainty over whether the Federal Reserve will cut interest rates next month.
The release of US employment data for September showed that the economy added 119,000 jobs, well above the 50,000 expected.
The optimistic data has cast doubt on the likelihood of a Federal Reserve rate cut in December. According to CME Group’s FedWatch tool, it currently stands at around 40%.
Bitcoin’s decline also coincided with a stock market correction, despite Nvidia’s impressive earnings report.
Cryptocurrencies are suffering from active selling by whales, which follows a four-year cycle, and this is usually when prices fall, noted James Butterfill, head of research at CoinShares.
And while we don’t share this view from a fundamental perspective, it has proven to some extent correct—large holders have been selling since September.
Additionally, early October saw a cascading liquidation of highly leveraged cryptocurrency positions, setting the stage for continued volatility.