Fri Nov 21 11:00:00 UTC 2025: Summary:

The crypto market, which had been performing strongly leading up to October, has experienced a significant downturn. Bitcoin, Ethereum, and Solana have all seen their prices drop considerably in the past week, with Bitcoin hitting a low of under $87,000. Crypto-related stocks have also suffered. This decline is attributed to factors such as a flash crash in October, caution from the Federal Reserve regarding interest rate cuts, and investors generally avoiding riskier assets. While some analysts are optimistic about a future recovery driven by institutional adoption and a potential expansionary monetary environment, others point to macroeconomic uncertainties as the cause for concern.

News Article:

Crypto Market Plunges as Bitcoin Slumps Below $87,000

NEW YORK (Fortune) – The cryptocurrency market is reeling from a sharp downturn, erasing gains made earlier in the year. Bitcoin, the bellwether cryptocurrency, plummeted to a low of under $87,000 on Thursday, a 14% drop from last week. Other major cryptocurrencies like Ethereum and Solana have followed suit, declining 13% and 9% respectively.

The slump extends to crypto-related stocks, with Strategy and Circle both experiencing significant losses. This market rout comes despite earlier optimism surrounding President Trump’s supportive regulatory stance, which fueled Bitcoin’s outperformance of the S&P 500 for much of the year.

Analysts point to a combination of factors driving the decline, including a flash crash in October, caution from the Federal Reserve regarding interest rate cuts, and a general shift away from riskier assets amid macroeconomic uncertainty.

“Markets are essentially flying blind right now, starved of meaningful macro data,” explained James Butterfill, head of research at CoinShares. “A sharp repricing in expectations for a December Fed rate cut has fueled the selloff.”

The downturn began on October 10th, triggered by a major liquidation event following President Trump’s tariff threats against China. The likelihood of another rate cut by the Federal Reserve is diminishing which is solidifying the market’s decline.

Despite the current downturn, some analysts remain optimistic. Vetle Lunde, head of research at K33, believes the increasing institutional adoption of crypto this year could pave the way for a recovery. Lunde predicts Bitcoin will bottom out in the $84,000-$86,000 range before rebounding.

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