- Bitcoin plunges below $95,000, erasing nearly all 2025 gains amid rising market uncertainty and fading hopes for a Fed rate cut
- Massive outflows from Bitcoin ETFs and $1.3 billion in liquidated leveraged positions deepen the sell-off, highlighting weak market liquidity and investor anxiety
- Strategy Inc. under pressure, as its market value nears the worth of its BTC holdings; Michael Saylor announces new Bitcoin purchases and urges investors to “HODL."
On Friday, Bitcoin fell below the $95,000 mark, reaching $94,508 – its lowest level in about six months. Since hitting a record high of $126,251 in early October, the cryptocurrency has lost nearly 25% of its value. It is now dangerously close to erasing all gains made in 2025, with the year-end price of 2024 standing at $93,714.
Bitcoin, daily timeframe, source:TradingView
Massive ETF Outflows and Leveraged Liquidations
One of the key drivers of the decline is the significant capital outflow from Bitcoin-based ETFs. On Thursday alone, approximately $870 million was withdrawn – the second-largest daily outflow since these instruments were launched. The market is still reeling from the mass liquidation on October 10, when around $19 billion in leveraged positions and over $1 trillion in total crypto market capitalization were wiped out. In the last 24 hours, another $1.3 billion in leveraged positions was liquidated, further intensifying selling pressure.
Macro Pressure and Weak Liquidity Worsen the Outlook
Bitcoin’s correction is closely linked to the broader sell-off in risk assets, particularly U.S. tech stocks. Investors are increasingly revising their expectations for the Federal Reserve’s monetary policy. Following recent hawkish remarks from Fed officials, hopes for a rate cut in December have significantly diminished.
Adding to the concern is the declining liquidity in the crypto market. Market depth – the ability of the market to absorb large orders without significant price movements – has dropped by around 30% compared to peak levels earlier this year. As a result, even moderate trade volumes can now lead to sharp price swings.
Strategy Inc. in Focus as Michael Saylor Steps In
Strategy Inc., one of the largest corporate holders of Bitcoin, has also come under pressure. Its stock around 2%, raising concerns that its market value could dip below the value of its BTC holdings (approximately $61 billion). The company’s total enterprise value, including debt and preferred equity, currently stands at $74.8 billion.
Strategy Inc. , daily timeframe, source: TradingView
Michael Saylor, Strategy’s co-founder, announced that the firm is “buying a lot” of Bitcoin and promised to reveal more details on Monday. He also urged investors to “HODL” – a call to hold on to their Bitcoin despite the ongoing downturn.
The current environment for Bitcoin remains highly volatile and uncertain. The next few trading sessions could be critical in determining whether this is merely a short-term correction or the beginning of a deeper bearish trend.
