Bitcoin once dropped below $87,000! Over 220,000 people across the crypto network got liquidated.

Cryptocurrency markets continued their decline on November 20, extending a drop that has lasted over a month, with Bitcoin falling more than 4%, dropping below $87,000 for the first time since April.

As of November 21, Bitcoin was trading at $87,632, down 4.28%.

Ethereum fell over 5%, and Cardano dropped more than 3%.

Data from Coinglass shows that over 220,000 traders were liquidated in the past 24 hours across the entire crypto market, totaling $814 million (approximately 5.8 billion RMB) wiped out.

Analysts point out that the recent decline in cryptocurrencies is mainly driven by a new wave of risk aversion and tech stock sell-offs. Former support forces—including large investment funds, ETF allocators, and corporate treasuries—are exiting the market, causing Bitcoin to lose a key pillar of its rally this year and triggering a new fragile phase.

An analyst from 10X Research said, “The crypto market has entered a ‘confirmed bear market’ stage. Weak ETF inflows, continued selling by long-term holders, and low retail investor interest all indicate that market sentiment is deteriorating behind the scenes.”

“Cryptocurrencies are experiencing massive sell-offs by whales following the four-year cycle logic, and this phase is usually when prices decline,” said James Butterfill, Head of Research at CoinShares. “Although we don’t believe this theory holds fundamentally, it has become a self-fulfilling prophecy, with large holders selling over $20 billion worth of assets since September.”

Meanwhile, U.S. stocks have also seen renewed volatility due to valuation concerns over AI-related stocks and cooling expectations for a Fed rate cut in December. Nvidia’s earnings report initially sparked AI enthusiasm, but the rally quickly faded. In contrast, cryptocurrencies remain deep in a correction cycle driven by deleveraging and waning retail demand, with this “asset cross-divergence” becoming increasingly evident since early October.

Options markets are also watching key support levels. According to Deribit, a platform under Coinbase (COIN.US), the strongest demand for downside protection is near $85,000, followed by $82,000, indicating traders are preparing for further declines.

Strategists note, “The crash in cryptocurrencies has peeled away the main speculative outlets in the market. In the current environment, crypto assets are no longer the ‘canary in the coal mine,’ but rather the mine itself, collapsing under its own leverage.”

Additionally, macroeconomic uncertainties have heightened market tension. Jake Ostrovskis, head of OTC trading at Wintermute, said, “In the absence of key economic data, the Federal Reserve’s policy path remains unclear, and this uncertainty is more suppressive of investors’ risk appetite than any other factor, especially in high-risk assets.”

Industry insiders point out that macro signals are only the spark that ignites the fire in the crypto market. Since last year, institutional allocations, spot ETF inflows, and corporate crypto holdings supported prices in the first half of the year. However, when interest rate windows close and sentiment shifts to defense mode, these external supports tend to withdraw faster than retail liquidity.

Daily Economic News, compiled from public sources

(Edited by: Wen Jing)

Keywords: Bitcoin