Bitcoin Crash 2025: BTC Falls Below $90K – $1 Trillion Erased from Crypto Market | InfinityxVerse.com
Bitcoin Crash 2025: Why BTC Crashed Below $90,000 and Erased $1 Trillion in Weeks
Published on November 20, 2025 | By InfinitxVerse Research Team
Bitcoin has officially entered its deepest correction of 2025. On November 20, 2025, the leading cryptocurrency plunged to a 7-month low near $88,500, completely wiping out all yearly gains and sending shockwaves across the entire digital asset ecosystem.
Over the past six weeks alone, more than $1 trillion in market capitalization has vanished from the crypto space — turning what many called the “Trump pump” into one of the fastest and most brutal reversals in Bitcoin history.
Current Bitcoin Price (as of Nov 20, 2025 – 18:30 UTC): ~$91,400
24-hour drop: -9.8%
Loss from October all-time high ($126,000): -27.5%
Total crypto market cap: Down from $4.3T → $3.2T
What Caused the 2025 Bitcoin Market Crash?
The collapse didn’t happen overnight. A deadly combination of macroeconomic shifts, institutional outflows, and technical breakdowns created the perfect storm:
- Federal Reserve’s Hawkish Stance – Expectations for a December rate cut collapsed from over 90% to under 40% in just weeks, crushing liquidity-dependent assets.
- Massive ETF Outflows – U.S. spot Bitcoin ETFs recorded $1.8 billion in net outflows since November 12, with Thursday alone seeing nearly $900 million exiting.
- Lingering FTX Trauma – Three years after the exchange collapse, billions in institutional money are still locked or only partially repaid, eroding long-term confidence.
- Leverage Flush & Liquidation Cascades – Over $19 billion in leveraged positions were wiped out in October’s initial flash crash, leaving the market fragile.
- Thinning Order Books – Bitcoin market depth dropped from $766 million to just $535 million, making large moves far more violent.
Altcoins Suffer Even Worse: Ethereum, Solana, XRP in Freefall
While Bitcoin lost nearly 30% from its peak, many major altcoins have been absolutely destroyed: Asset Peak Price (2025) Current Price Decline Ethereum (ETH) $4,955 $2,910 -41% Solana (SOL) $295 $168 -43% XRP $2.88 $1.42 -51% PEPE All-time high Current -80% YTD
The meme coin sector has been decimated, with many 2024–2025 favorites losing 70–90% of their value in weeks.
Are Corporate Bitcoin Treasuries at Risk?
Companies that loaded up on Bitcoin during the rally are now facing unrealized losses of historic proportions.
MicroStrategy (rebranded as Strategy Inc.), the largest corporate holder with over 649,870 BTC, continued buying aggressively adding 8,178 BTC at an average price of $102,171 just days ago. With Bitcoin now trading well below that level, analysts warn that a prolonged stay under $90,000 could push half of all corporate BTC holdings underwater.
On-Chain Signals: Extreme Capitulation in Progress
Glassnode and CryptoQuant data reveal levels of pain rarely seen:
- Short-term holder SOPR dropped below 1.0 worse than the 2022 FTX crash
- Over 99% of addresses that bought in the last 6 months are in loss
- Long-term holders sold a record 815,000 BTC in the past 30 days
- Fear & Greed Index crashed to 15 (Extreme Fear)
Yet, historically, such extreme capitulation has marked major cycle bottoms.
Will Bitcoin Recover in 2025? Analysts Are Split
Bearish scenarios:
- Bloomberg Intelligence: Possible retest of $72,000–$74,000
- Forbes contributors warn of a 50%+ crash toward $60,000 if forced selling continues
Bullish counterarguments:
- November remains one of Bitcoin’s strongest months historically
- Post-halving years often deliver V-shaped recoveries after deep corrections
- Whales and institutions are quietly accumulating during the panic
- Any Fed pivot or pro-crypto policy action from the new U.S. administration could ignite the next leg up
“This isn’t the end of the bull market : it’s the final shakeout before the real parabolic phase begins.”
Popular sentiment among diamond-handed Bitcoin veterans
Final Thoughts: Opportunity or Obituary?
The 2025 Bitcoin crash has been fast, brutal, and emotionally exhausting. Retail investors are capitulating en masse, social media is flooded with despair, and billions in paper gains have evaporated.
But for those who understand Bitcoin’s cyclical nature, extreme drawdowns have always preceded the most explosive rallies. Whether this correction marks the final purge before a new all-time high or the beginning of a longer bear market only time will tell.
One thing is certain: in crypto, the greatest wealth transfers happen during periods of maximum pain.
Stay vigilant, manage risk, and never invest more than you can afford to lose.
InfinitxVerse will continue monitoring the markets 24/7 and bring you real-time updates on the next move.
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