Bitcoin price plummeted to $94,000 on Friday, crashing to six-month lows and erasing nearly all of its 2025 gains as a brutal selloff gripped crypto markets. The cryptocurrency fell over 20% from its October peak of $126,000, leaving year-to-date gains at less than 4% after being up 35% earlier this year.
The brutal decline accelerated this week as long-term holders dumped record amounts of Bitcoin. According to CryptoQuant data, investors sold approximately 815,000 BTC worth nearly $79 billion in just 30 days—the largest liquidation since early 2024. Spot Bitcoin ETFs hemorrhaged hundreds of millions in daily outflows, with Thursday seeing $866.7 million exit the funds, the worst outflow since August.
Macroeconomic headwinds compounded the crypto carnage. A broader tech stock selloff, delayed U.S. economic data due to the recent government shutdown, and uncertainty around Federal Reserve rate policy fueled risk aversion across markets. Bitcoin’s market depth dropped from $766 million in early October to $535 million this week, making prices more vulnerable to volatility.
Technical breakdowns intensified selling pressure. Bitcoin breached its 200-day moving average and key Fibonacci support levels, with analysts warning that a decisive drop below $97,000 could open a path toward $92,000–$74,000. The Fear & Greed Index plunged to “Extreme Fear,” reflecting deep market anxiety despite long-term holders attempting to stay the course.
JPMorgan analysts identified a potential floor at $94,000, noting this aligns with Bitcoin’s estimated production cost. The bank maintains a bold 6–12 month upside projection of $170,000, suggesting the current dip may represent a buying opportunity. However, futures funding rates turned negative and $550 million in positions were liquidated on November 13, reinforcing bearish momentum.
The selloff mirrors past mid-cycle retracements, with Bitfinex analysts noting the 22% drawdown matches typical corrections seen during the 2023–2025 bull market. Approximately 72% of the total BTC supply remains in profit even at current levels, indicating the market hasn’t reached capitulation.
With tech stocks sliding and institutional buying below daily mining supply, Bitcoin faces an uphill battle. The cryptocurrency that started 2025 strong now teeters on the brink of erasing its annual gains entirely, testing the conviction of even the most devoted crypto faithful. Whether this represents a buying opportunity or the start of a deeper bear market depends on whether fresh demand materializes to counter relentless selling pressure.
