Bitcoin (BTC) prices plunged below the $95,000 psychological barrier on Friday, capping a brutal 48-hour sell-off. The Bitcoin crashes event was ignited by a massive, near-record $870 million capital flight from U.S. spot ETFs, as investor optimism for a December Federal Reserve rate cut evaporated.
The digital asset market is reeling from a “risk-off” cascade that also saw the Dow shed 800 points. This violent deleveraging marks Bitcoin’s worst single-day performance in months and has pushed the price to a six-month low
Quick Take: The Market Carnage
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Price Collapse: Bitcoin (BTC) crashed to a six-month low, trading at $94,300
- Massive Outflows: U.S. Spot Bitcoin ETFs experienced ~$870 million in net outflows on Thursday, Nov 13, 2025. This is the second-largest single-day withdrawal on record
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Record Liquidations: The price drop triggered over $1.3 billion in forced liquidations of leveraged long positions across the cryptocurrency market.
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Primary Catalyst: Investor confidence in a December Federal Reserve rate cut collapsed. Market-implied odds for a cut plummeted from 97% earlier in the week to just 52% (Finance Magnates.
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Total Market Impact: The total cryptocurrency market capitalization fell more than 6% in 24 hours, dropping to $3.29 trillion
Anatomy of the Crash: $1.3B in Liquidations
The sell-off began late Wednesday but accelerated dramatically on Thursday, Nov 13, and continued into Friday, Nov 14. Bitcoin’s price, which had reached an all-time high of $126,296 in October 2025, is now down 24% from that peak .
The move below the $100,000 support level earlier in the week triggered a cascade of automated selling. As the price fell, traders who had used borrowed money (leverage) to bet on higher prices were forced to sell their positions, an event known as “long liquidation.”
This panic selling created a feedback loop: liquidations pushed the price lower, which in turn triggered more liquidations. Data from derivatives markets shows this cascade effect was responsible for at least $1.3 billion in forced selling, wiping out optimistic traders.
By Friday morning (ET), the price had breached $95,000 multiple times, hitting a low of $94,300 before a weak bounce. Analysts are now closely watching the $92,000–$95,000 range as the next “logical support zone.
Unprecedented ETF Exodus
The crash was not just a derivatives-market event; it was fundamentally driven by institutional and retail capital fleeing the flagship U.S. Spot Bitcoin ETFs.
On Thursday, November 13, 2025, the newly launched ETFs—often seen as a barometer for mainstream adoption—suffered their second-worst day on record.
Data: ETF Net Outflows (Nov 13, 2025)
| Fund Category | Net Flow (USD) | Source Data Provider |
| Total Net Outflow | -$869.9 million | SoSoValue [via 4.3] |
| Grayscale Mini Trust | -$318.2 million | SoSoValue [via 4.3] |
| BlackRock’s IBIT | -$256.6 million | SoSoValue [via 4.3] |
| Fidelity’s FBTC | -$119.9 million | SoSoValue [via 4.3] |
This massive $870 million withdrawal is second only to the $1.14 billion outflow seen on February 25, 2025 . The exodus was broad, with nearly all major funds, including those from BlackRock, Fidelity, Ark/21Shares, and Grayscale, posting significant net-negative flows.
This marks a sharp reversal from the billions in inflows that fueled Bitcoin’s rally from $51,000 to over $126,000 earlier in 2024.
Macro Headwinds: Why Now?
Market analysts attribute the sudden collapse to a perfect storm of macroeconomic factors, primarily a dramatic reassessment of the Federal Reserve’s path.
1. The Federal Reserve Pivot
For weeks, markets had been pricing in a near-certainty (as high as 97%) of a Fed interest rate cut in December to stimulate a cooling economy.
However, this optimism evaporated. Traders are now seeing only a 56.4% chance of unchanged rates, with the odds of a cut collapsing. This shift makes high-risk, non-yielding assets like Bitcoin—often called “digital gold” but trading like a high-beta tech stock—far less attractive compared to safer, yielding assets like U.S. Treasuries.
The 10-year Treasury yield, which moves opposite to its price, rose to 4.15%
2. End of U.S. Government Shutdown
In a “buy the rumor, sell the news” event, the end of the record 43-day U.S. government shutdown also contributed to the uncertainty.
While the reopening is positive, it also means that a backlog of crucial economic data (on inflation, labor, and GDP), which was halted during the shutdown, is about to be released. Traders appear concerned this delayed data will reveal a weaker-than-expected economy, prompting them to de-risk before the numbers are public.
Expert Analysis: ‘Risk-Off Reset’ or Start of a Bear Market?
Experts are divided on whether this is a deep, healthy correction or the start of a prolonged downturn.
Vincent Liu, CIO of Kronos Research, characterized the move as a “risk-off reset.” In comments to the press, he noted that institutions are pulling back amid “macro noise” and thinning liquidity.
Min Jung, a research associate at Presto Research, echoed this sentiment, calling it a “broad de-risking across markets.”
However, some on-chain analysts are warning of panic. Pseudonymous CryptoQuant analyst ‘CrazzyBlockk’ told Decrypt that new, short-term holders are seeing 20% to 40% losses, a level that often “kicks off a period of panic selling.”
Despite this, CrazzyBlockk concluded, “we remain distant from the classic signals of a macro bear market,” suggesting this is a severe correction rather than a cyclical top.
What to Watch Next
The market remains on a knife’s edge. All eyes are on two key factors:
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ETF Flows: If the $870 million outflow on Thursday was a one-off panic event, the market may stabilize. If, however, it marks the start of a new trend of sustained outflows, the price will face immense pressure.
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Macro Data: The upcoming, delayed U.S. economic data releases will be critical. Any surprises in inflation or employment figures could dictate the Fed’s next move and, in turn, Bitcoin’s direction.
For now, traders are watching the $92,000 support level. A break below that could open the door for a much deeper slide, potentially targeting the $85,000 region.






