Bitcoin Falls to Lowest in Over Seven Months Amid “Perfect Storm” of Market Pressures
On Friday, November 21, Bitcoin prices dropped sharply, falling to nearly $80,000—their lowest level in more than seven months. The decline comes after a series of challenging market conditions that experts are calling a “perfect storm.”
According to Coinbase data from TradingView, Bitcoin hit around $80,500, down about 36% from its all-time high last month and its lowest price since mid-April.
William Stern, founder of Cardiff, explained that this drop isn’t just about sentiment. “Bitcoin testing $80,500 isn’t just about sentiment; it’s about a massive liquidity exit,” he said. He pointed to two main reasons: the Federal Reserve keeping interest rates high, making borrowing more expensive, and a large investor (a “whale”) selling over $1.3 billion worth of Bitcoin.
“When you combine a hawkish Fed with that level of supply shock, the floor naturally falls out,” Stern added.
Other analysts also cited several factors behind the drop, including market sentiment, leverage, and broader economic conditions.
Joe DiPasquale, CEO of BitBull Capital, noted, “The decline is a mix of risk-off sentiment, ETF outflows, and leveraged positions being unwound. Each wave of selling triggers more forced liquidations, creating a mechanical slide rather than a single cause.”
Katherine Dowling from Bitwise Asset Management pointed to multiple pressures: Fed rate sentiment, a soft labor market, tech sector risk, margin calls, and even government shutdown worries. She advised that such pullbacks are normal for Bitcoin and encouraged focusing on long-term fundamentals.
Matt Williams from Luxor highlighted liquidity issues and high leverage, saying, “Liquidity is drying up, especially as we approach the holiday week. Many long positions around $90k are being forced to sell.”
David Brickell from FRNT explained that Bitcoin’s drop is part of a continued trend. Tech stocks remain under pressure, liquidity in U.S. funding markets is tight, and breaking key technical levels has triggered automated selling.
Brickell summarized: “The combination of tighter liquidity, systematic selling, and no new bullish news is leaving markets without a natural bid.”
