Crypto Selloff: BTC Drops Below $90K Amid ETF Outflows
Crypto selloff accelerated on November 21 as major cryptocurrencies plunged. Bitcoin fell over 7% in 24 hours, dipping below $90,000 to a low of $85,201, and is down nearly 13% for the week. Ethereum slid 9% to around $2,714, Solana dropped 12% to $125, and XRP lost 10%. Overall market capitalization fell 6.5% to $2.94 trillion amid liquidations, profit-taking, and macroeconomic uncertainty.
Spot Bitcoin ETFs recorded a modest $75 million inflow, but November outflows exceed $3 billion. Analysts point to reduced liquidity from market makers, triggered auto-sell orders, and delayed Fed data as catalysts for continued volatility. Tom Lee highlighted balance-sheet gaps at market-making firms as a core driver of ongoing selling pressure.
Regulatory dynamics shifted under new SEC Chair Paul Atkins, with enforcement actions down 25% in 2025. Atkins aims to establish a coherent digital-assets framework. Traders should watch critical support levels closely as this crypto selloff tests market stability and liquidity.
Bearish
The report details a broad crypto selloff driven by heavy liquidations, profit-taking and renewed macroeconomic uncertainty. Bitcoin’s breach of $90,000 triggered automatic sell orders, amplifying downward momentum across altcoins. Spot ETF outflows exceeding $3 billion this month highlight waning institutional appetite, while Tom Lee’s insight into market-maker balance-sheet gaps signals persistent liquidity strains. Historically, similar selloffs—such as the October 2023 crypto crash—saw protracted bearish phases until liquidity and sentiment stabilized. Given these factors, the immediate outlook remains bearish, with traders likely to witness high volatility and pressure on key support levels. In the long term, stabilization may depend on renewed institutional inflows and clearer regulatory signals from the SEC.