BTC plunged 8.6% in 24h and is now down 22% in 30 days, massively underperforming the market. Here are the 3 key reasons behind the crash:
🔻 1. Record ETF Outflows — Institutions Are Pulling Back
• $903M yanked out of U.S. spot BTC ETFs in a single day• BlackRock & Grayscale led the exodus• November outflows near $3B, erasing almost 40% of October inflows
👉 This drains spot demand and forces custodians to sell BTC.
⚠️ Key Level to Watch: Sustained outflows could push BTC below $80K.
🔻 2. $443M Long Liquidations — A Classic Long Squeeze
• $443M in leveraged longs wiped in 24h• BTC perpetual OI dropped 6.4% as traders panic-closed• Funding turned negative → fewer new long entries
⚠️ Danger Zone: A break below $83.5K could trigger another liquidation wave.
😨 3. Extreme Fear Grips the Market
• CMC Fear & Greed Index hits 11 → lowest since March 2025• Macro negatives stack up:– Possible MicroStrategy removal from MSCI → risks $2.8B outflows– Japan’s $135B stimulus didn’t lift risk assets• 7-day RSI plunges to 16.5 → extremely oversold
📉 Bottom Line
BTC’s drop isn’t random — it’s a mix of:✔ Massive ETF withdrawals✔ Liquidation cascade✔ Sentiment collapse
Oversold conditions could spark a relief bounce, but the trend remains bearish until ETF flows stabilize.
🔍 Want to know where Bitcoin could head next? Check the full analysis in our Bitcoin price forecast guide.Disclaimer:This content is for informational purposes only and should not be considered financial or investment advice. Cryptocurrency markets are highly volatile, and prices can change rapidly. Always conduct your own research and consult with a qualified financial advisor before making any investment decisions. The views expressed here reflect market analysis at the time of writing and may not represent future outcomes.
