Bitcoin Amid Macro-Economic Fears

The volatility that has gripped the crypto market for the last six weeks intensified, with Bitcoin (BTC) briefly plunging below the $90,000 level on November 18, 2025.

This major correction has erased nearly all of the asset’s gains for the year.

Bitcoin shed almost a third of its value since its October peak of $126,000, wiping out over $1.2 trillion from the total cryptocurrency market capitalization in the preceding six weeks. The dip below $90,000 placed the average Bitcoin ETF investor underwater, as this price roughly corresponds to the average entry price of all ETF inflows since their launch.

Coinidol.com reported that BTC price is declining and has paused above the $88,500 support. The price corrected upward but was halted by the moving average lines, indicating a further decline for Bitcoin. 

The scale of the loss and underlying fear

Market participants widely attributed the collapse to a combination of external macro factors. These include fading expectations for a quick US Federal Reserve interest rate cut and a pervasive “risk-off” mood across broader financial markets, particularly amid mounting fears of an Artificial Intelligence (AI) stock bubble. As the most leveraged expression of risk appetite, crypto often suffers the hardest when global sentiment turns cautious.

Analysts noted that the cascading selloff was amplified by listed companies and institutions exiting their leveraged positions after piling in during the rally. This corporate selling compounded the contagion risks across the market, highlighting that while institutional adoption is growing, institutional liquidity risk remains a major structural challenge.