TLDR
Bitcoin dropped to $93,000, marking a 4.8% decline and erasing over half of last week’s gains
Spot Bitcoin ETFs saw $438.38M in outflows on Nov 25, breaking a five-day streak of inflows
MicroStrategy made its largest-ever Bitcoin purchase of $5.4B, bringing total holdings to 386,700 BTC
Market saw $550M in liquidations, with 70% from long positions
BlackRock’s IBIT bucked the trend with $267.79M in inflows despite market downturn
Bitcoin witnessed a sharp pullback on Monday, dropping to $93,000 as market dynamics shifted amid heavy institutional activity and widespread long position liquidations. The move erased more than half of last week’s gains, with the price falling 4.8% in a single day.
The decline coincided with notable outflows from spot Bitcoin ETFs, which recorded $438.38 million in withdrawals on November 25, breaking a five-day streak of positive inflows. This marked a stark contrast to the previous week’s record-high $3.38 billion in inflows, suggesting a temporary shift in institutional sentiment.
Bitwise’s BITB led the ETF outflows with $280.73 million, followed by substantial withdrawals from major players including Grayscale’s GBTC, Fidelity’s FBTC, and ARK and 21Shares’ ARKB. However, BlackRock’s IBIT demonstrated resilience, attracting $267.79 million in new investments despite the market downturn.
Market makers appeared to target leveraged positions, with liquidations spiking to $550 million. Long positions accounted for 70% of these liquidations, indicating that many traders had been betting on continued upward momentum following recent gains.
Ryan McMillin, chief investment officer at Merkle Tree Capital, identified two main factors behind the price movement. “We see a combination of two catalysts pushing Bitcoin’s price down temporarily,” he explained.
“There’s a sell wall just below the psychological barrier around $100,000, and the build-up of leveraged longs proved too tempting for market makers not to chase.”
In a notable contrast to the market’s downward pressure, MicroStrategy announced its largest-ever Bitcoin purchase, acquiring $5.4 billion worth of the cryptocurrency. This strategic move increased the company’s total holdings to 386,700 BTC, valued at approximately $37.6 billion, reinforcing institutional confidence in Bitcoin’s long-term prospects despite short-term volatility.
The impact of the price decline extended beyond Bitcoin, affecting other cryptocurrencies in the top 10 by market capitalization. Dogecoin experienced the steepest decline, falling about 9.5% to $0.38, according to CoinGecko data.
Technical analysts suggest that $92,000 represents a crucial support level for Bitcoin. “There isn’t much liquidity below $92,000, so that looks like the floor for this move,” McMillin noted, expressing optimism about a potential retest of the $100,000 level before week’s end.
The Ethereum market showed relative stability during this period, with its ETFs recording modest activity. The nine spot Ethereum ETFs saw just $2.83 million in inflows on November 25, a substantial decrease from the previous trading day’s $91.21 million.
Market observers point to normal rebalancing activities as traders position themselves for the traditionally active December trading period. The timing of the pullback aligns with historical patterns of price consolidation following rapid advances.
Nick Forster, founder of DeFi derivatives protocol Derive, emphasized the broader context: “Pullbacks like these are not uncommon in bull markets. We are seeing strong structural tailwinds for Bitcoin, bolstered by favorable conditions such as the interest-rate cutting cycle and evolving regulatory frameworks.”
The market’s reaction appears measured, with traders maintaining positions above key support levels despite the sharp movement. Trading volumes remained within normal ranges, suggesting orderly market conditions rather than panic selling.
Looking at the institutional landscape, the mix of ETF outflows and MicroStrategy’s major purchase highlights the diverse approaches large players are taking to Bitcoin exposure. While some ETF investors opted to take profits, others viewed the dip as a buying opportunity.
Data from exchange order books shows concentrated support around the $92,000 to $93,000 range, indicating strong buyer interest at these levels. This technical structure suggests the market has established a solid foundation for price stability.
The day’s events demonstrate the ongoing maturation of the Bitcoin market, where institutional flows, leverage dynamics, and technical factors interact to create price movement. The presence of sophisticated market makers and diverse institutional participants continues to shape Bitcoin’s price discovery process.
At press time, Bitcoin trades at $94,646, showing signs of stabilization after the earlier decline. Trading volumes across major exchanges indicate steady activity, with neither panic selling nor aggressive buying dominating market flows.
