Bitcoin’s price dipped below $80,000 in November 2025, prompting concerns that a final leverage flush could occur and trigger widespread liquidations. This drop comes amid heightened market volatility, with some analysts predicting potential support at the $70,000 level. )}$, Institutional investors are increasing their exposure despite significant price swings, highlighting both anticipation and risk-taking behavior in the cryptocurrency market.
Large funds like Harvard and Japan’s Metaplanet have increased their Bitcoin holdings. TradingView suggests further declines to the $70K-$80K range are possible. This was driven by a staggering over $1 trillion in market capitalization disappearing, mostly due to significant spot BTC ETF outflows. Meanwhile, institutional players injected new capital, suggesting strategic confidence amidst potential short-term losses.
The event triggered sharp reductions in Bitcoin futures open interest, indicating a substantial retreat from leveraged positions. Negative perpetual funding rates and the largest-ever daily crypto leverage liquidations also marked this market disturbance. historical parallels suggest these flushes often precede market recoveries but analysts like Peter Brandt caution that risks persist until leverage fully purges.
Institutional support, however, may mitigate the instability. Data from past cycles and current conditions point to a potential recovery. Nevertheless, regulatory clarity remains elusive, with no new guidance issued by institutions such as the SEC.
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