Bitcoin Plunges to Six-Month Low as Sell-Off Intensifies

The cryptocurrency market is facing a severe downturn, with Bitcoin leading the decline by falling below a critical support level over the weekend. The world's most prominent digital asset has dropped to its lowest valuation in half a year, breaching the psychologically significant $95,000 threshold for the first time in months. This dramatic slide now threatens to erase all of Bitcoin's gains accumulated throughout 2025.

As of Saturday, November 15, 2025, Bitcoin is trading between $94,000 and $97,000—a substantial retreat from its early October peak of approximately $126,251. This six-month low coincides with a broad-based liquidation across financial markets. The primary catalyst appears to be shifting expectations around U.S. monetary policy, with the likelihood of a Federal Reserve interest rate cut in December having diminished considerably. This development has triggered an exodus from risk-sensitive investments, and Bitcoin has emerged as one of the earliest casualties.

Market sentiment indicators reflect growing anxiety among cryptocurrency participants. The Crypto Fear & Greed Index is rapidly approaching "extreme fear" territory. Simultaneously, derivatives markets show increased demand for protection against further declines, with open interest for put options at strike prices of $85,000 and $90,000 now exceeding that of bullish call options. Bitcoin-focused exchange-traded funds have witnessed significant outflows, with approximately $870 million withdrawn on Thursday alone—marking the second-largest daily redemption since these products launched.

Core Support Base Shows Signs of Erosion

Perhaps most concerning to market observers is the behavior of long-term investors, traditionally considered the bedrock of Bitcoin's support structure. These holders have begun divesting substantial portions of their positions. Over the past 30 days, long-term holders have sold approximately 815,000 Bitcoin, representing the fastest pace of distribution since January 2024. These profit-taking activities are creating substantial downward pressure on prices.

Should investors sell immediately? Or is it worth buying Bitcoin?

Recent buyers face even more immediate challenges. Short-term holders, who established positions in recent months, purchased at an average cost basis of roughly $112,000, meaning virtually all recent entrants are currently holding positions at a loss. Bitcoin is now testing a crucial on-chain support level known as the "$95,000 HODL wall"—a price zone where a significant portion of all Bitcoin was originally acquired. A sustained breach of this barrier could potentially trigger further declines toward $85,000.

Despite the overwhelmingly negative sentiment, one on-chain metric offers a glimmer of optimism. The Network Value to Transactions (NVT) Ratio recently displayed a "Golden Cross" pattern, suggesting that Bitcoin's valuation is increasingly supported by genuine transactional activity rather than pure speculation.

Leverage Unwind and Regulatory Developments Compound Pressure

The price decline has been exacerbated by substantial liquidations in leveraged positions. Within a single 24-hour period, over $655 million in long positions were forcibly closed, creating additional selling pressure. Market depth—the market's ability to absorb large orders without significant price impact—has declined by approximately 30% from its yearly high, resulting in thinner liquidity and heightened volatility.

Regulatory clarity continues to evolve in the United States. On November 10, the Senate Agriculture Committee introduced bipartisan legislation that would grant the Commodity Futures Trading Commission (CFTC) expanded authority over digital commodity spot markets. Concurrently, the Securities and Exchange Commission (SEC) is developing a "token taxonomy" framework based on the Howey Test to establish clearer classification standards for digital assets. These initiatives follow the passage of the GENIUS Act in July 2025, which established a federal framework for stablecoins while explicitly excluding volatile cryptocurrencies like Bitcoin.