Bitcoin News Today: Has Bitcoin's Drop to $87K Signaled a Temporary Pullback or the Onset of a More Significant Decline?

Bitcoin Faces Sharp Downturn Amid Market Turbulence

Bitcoin has experienced a steep decline, dropping below $87,000 in one of the most dramatic corrections since spot ETFs were introduced. This downturn has been fueled by a combination of institutional withdrawals, significant sales by large holders, and broader economic pressures, all of which are putting the cryptocurrency's durability to the test.

Over the past 11 days, Bitcoin's value has fallen by $25,000 from its November 11 peak of $107,500, reaching a low of $80,600 before partially recovering to approximately $87,000. Market experts are now debating whether this is a brief pause before a rebound or the start of a more prolonged bearish trend, as both blockchain data and institutional activity present mixed signals.

One of the main drivers behind the sell-off has been persistent outflows from Bitcoin ETFs. On Monday alone, these funds saw $151 million withdrawn, extending a four-week streak of net outflows that began in late October. This pattern signals a cooling of institutional interest, with BlackRock's IBIT ETF alone losing $2.47 billion in November as investors opted to rebalance portfolios and secure profits in response to tighter monetary policy. Blockchain analytics reveal a complex landscape: while mid-sized investors (holding 10–1,000 BTC) are increasing their holdings, larger whales (1,000–10,000 BTC) continue to sell, making it difficult for the market to establish a solid support level.

November 2025 has seen a surge in selling from major crypto holders, who have moved substantial amounts of Bitcoin onto exchanges—a move often preceding further price drops. According to CryptoQuant, these actions have coincided with a 20% decline in Bitcoin's price since November 11, leading to reduced liquidity and heightened volatility. Uncertainty around regulations, especially in the United States and Europe, has also made investors wary, as stricter compliance rules and possible tax changes encourage early asset liquidation.

Technical Signals and Future Outlook

Some technical indicators suggest the possibility of a rebound. The Relative Strength Index (RSI) on Bitcoin's daily chart has risen to 31, approaching levels that typically indicate an oversold market, while the MACD is hinting at a potential bullish crossover. Should buyers return, Bitcoin may attempt to break through the $90,000 resistance. Conversely, if the price falls below $85,000, it could trigger a further slide toward the psychologically significant $80,000 mark, a scenario that aligns with patterns seen in previous corrections.

Investor Sentiment Remains Split

Long-term holders are divided in their outlook. Some believe the current downturn is a healthy correction after months of speculative gains, with underlying strengths such as institutional adoption and blockchain advancements remaining intact. Others caution that ongoing economic challenges and regulatory uncertainties could extend the slump. The upcoming Federal Reserve meeting in December, which will review inflation and interest rate policies, is widely viewed as a pivotal event that could shape Bitcoin's short-term trajectory.

Strategies for Navigating Volatility

Given the current environment, investors are encouraged to focus on risk management techniques, such as dollar-cost averaging and diversifying their portfolios, rather than trying to predict market timing. While Bitcoin's price swings are nothing new, the interplay of institutional, technical, and regulatory factors makes forecasting its next move especially challenging.