The cryptocurrency market continues its downward spiral. On November 18, Bitcoin plunged over 6%, dropping below the $90,000 mark for the first time in nearly seven months, erasing all its year-to-date gains. Ethereum also fell more than 6%, slipping under $3,000. According to Coinglass data, over the past 24 hours, the total liquidation amount in cryptocurrency contracts exceeded $1.015 billion, affecting 183,500 traders.
The sell-off in risk assets intensified as market expectations for a Federal Reserve rate cut next month significantly diminished. Over the past week, Bitcoin has lost more than 15%, while Ethereum and XRP declined over 18%, and Solana and Cardano (ADA) dropped more than 20%. Since peaking on October 7, the total market capitalization of cryptocurrencies has shed over $1 trillion. Analysts warn that Bitcoin’s downturn may be far from over, with traders in the options market placing increasingly bearish bets.
Some market observers suggest that the cryptocurrency sell-off could force retail investors to liquidate positions, potentially triggering margin calls that may lead to further asset sales. This could create a feedback loop, amplifying declines across multiple markets as falling prices prompt additional margin requirements.
Meanwhile, Asia-Pacific equities and U.S. stock futures also declined. South Korea’s KOSPI and Japan’s Nikkei 225 both fell more than 3%, while Nasdaq 100 futures dropped over 1%, and S&P 500 futures slid 0.8%. Tech stocks led the losses, with Hanmi Semiconductor plunging over 8%, SK Hynix down nearly 6%, Advantest falling close to 4%, and Samsung Electronics dropping almost 3%. SoftBank Group tumbled more than 7%, wiping out over ¥2 trillion in market value in a single day.
**Market Sentiment Turns Bearish** Bitcoin’s retreat follows a record high just over a month ago, with year-to-date gains now completely erased. The enthusiasm around pro-crypto policies under the Trump administration has waned, and institutional buyers—from ETF allocators to corporate treasuries—have quietly exited, leaving the market without crucial liquidity support.
“This sell-off reflects a combination of profit-taking by long-term holders, institutional outflows, macro uncertainty, and leveraged long positions being unwound,” said Jake Kennis, senior research analyst at blockchain data platform Nansen.
**Options Traders Bet on Further Declines** Bloomberg reports that options traders are increasingly hedging against deeper losses, with bets on downside targets of $90,000, $85,000, and even $80,000 surging. Put options expiring by late November now total over $740 million in notional value.
“Momentum is a self-feeding machine,” said Anna Wu, cross-asset strategist at Van Eck. “Weak sentiment in U.S. markets ahead of Nvidia’s earnings and macro data has spilled into Asia. If Bitcoin is a sentiment indicator, it’s flashing bearish fear.”
**Macro Pressures Mount** Traders are closely watching Nvidia’s earnings report, seen as a bellwether for tech and speculative risk appetite, while reassessing Fed rate-cut expectations.
“The Fed and AI bubble concerns are the two major headwinds for crypto and risk assets heading into year-end,” said Adam McCarthy, research analyst at Kaiko.
Glassnode data shows long-term Bitcoin holders are accelerating profit-taking, with CryptoQuant reporting a record 800,000 BTC sold over the past 30 days—the highest since January 2024.
Without leveraged amplification, cross-market selling could still reinforce itself. The synchronized rally between crypto and equities earlier this year, driven by optimism over innovation and fading trade war fears, now appears to be reversing.
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