Crypto Market Nosedives: Bitcoin Plunges Below $90K, Liquidations Exceed $1 Billion
The cryptocurrency market extended its steep decline on Tuesday, November 18, as Bitcoin breached the critical $90,000 support level, triggering widespread losses across major altcoins and sparking over a billion dollars in liquidations. The latest downturn reflects mounting risk aversion among investors, exacerbated by technical breakdowns and deteriorating on-chain metrics.
Bitcoin (BTC), the largest digital asset by market capitalization, dropped precipitously from $95,903 to an intraday low of $89,455 — its weakest level since April. At the time of writing, BTC was changing hands around $89,812, down 5.1% over the past 24 hours and 28.6% below its record high of $126,080 reached just six weeks ago.
Ethereum (ETH) also faced considerable selling pressure, declining 5.3% on the day and hovering around the $3,000 mark. Other prominent cryptocurrencies, including Solana (SOL), Ripple’s XRP, Dogecoin (DOGE), and Cardano (ADA), were caught in the broader market slump, registering losses between 3% and 5%.
Out of the top 100 cryptocurrencies by market cap, only six managed to stay in the green. Among the worst performers were Pump.fun (PUMP), Zcash (ZEC), and Mantle (MNT), each shedding more than 9% in a single day.
This widespread selloff erased nearly $140 billion from the total crypto market value, which fell by 4.2% to $3.18 trillion. The sharp correction led to a wave of forced liquidations, particularly in the derivatives markets. According to data from CoinGlass, over $1.01 billion worth of crypto positions were liquidated in the past 24 hours, with long positions accounting for $718 million of that total.
Such large-scale liquidations have heightened caution among leveraged traders, especially after the $20 billion wipeout seen just a month ago. That previous rout had already shaken investor confidence, leading to widespread deleveraging across both centralized exchanges and decentralized finance platforms.
Market sentiment has now swung firmly into “Extreme Fear” territory. The Fear and Greed Index, a popular measure of investor sentiment, dropped three more points to 11 — its lowest reading since February. Historically, such deep fear levels have coincided with periods of suppressed prices and reduced trading activity.
On the technical front, Bitcoin’s chart paints a grim picture. The cryptocurrency has confirmed two major bearish formations. First, a double-top pattern has emerged, with peaks near $124,560 and a neckline around $107,276. This setup typically signals a prolonged downtrend, especially when the neckline is broken with significant volume, as it often triggers panic selling.
Second, a death cross — where the 50-day Exponential Moving Average (EMA) crosses below the 200-day EMA — has materialized. Although this is a lagging indicator, it traditionally suggests further downside risk if prevailing momentum fails to reverse.
Adding to the bearish outlook is the rapid decline in stablecoin reserves across exchanges. Data from Nansen reveals that the total stablecoin balance on centralized platforms has slipped to $85 billion, down from a recent high of $89 billion on November 10. Falling stablecoin reserves are seen as a sign of declining buying power within the ecosystem, suggesting that fewer traders are prepared to re-enter the market at current price levels.
Institutional behavior is also shifting. Corporate treasuries that had been active buyers during the year’s first half are now pulling back. Facing pressure from falling asset prices and the need to preserve capital, many firms have paused their crypto acquisition strategies or even started liquidating holdings to bolster their balance sheets.
Investor uncertainty has also affected spot Bitcoin ETFs. Despite attracting over $25 billion in inflows earlier this year, these funds have now seen more than $2.5 billion in net outflows since early November. Concerns about potential inflationary pressures, fueled by geopolitical instability and proposed tariff measures from U.S. leadership, are prompting investors to reconsider their exposure to high-risk assets like cryptocurrencies.
Adding to the macroeconomic unease is speculation around the Federal Reserve’s monetary policy trajectory. Fears that rising inflation could delay anticipated interest rate cuts have reduced investor appetite for speculative assets, including tech stocks and digital currencies.
Looking forward, market participants are closely watching for potential catalysts that could shift sentiment. One such event is the upcoming earnings report from Nvidia, the world’s leading semiconductor manufacturer. As a key player in the artificial intelligence boom, Nvidia’s performance could offer clues about the health of the AI sector — a space that underpins many next-gen crypto projects. Strong results could lift tech sentiment and partially revive crypto markets tethered to AI narratives.
Simultaneously, investors are awaiting the release of the Federal Open Market Committee (FOMC) minutes from the central bank’s November meeting. These minutes could provide deeper insight into policymakers’ thinking on inflation, interest rates, and the broader economy — all of which have direct implications for crypto market dynamics.
Beyond macroeconomic factors, the market is also grappling with internal headwinds. On-chain activity continues to weaken, with declining transaction volumes and wallet activity across major blockchains. This drop in usage suggests that investor engagement remains low, further dampening the prospects for a near-term recovery.
Additionally, regulatory uncertainty continues to loom. Ongoing investigations into several crypto exchanges and concerns about future enforcement actions have made institutional investors particularly cautious. Without clearer regulatory guidelines, many funds remain on the sidelines, waiting for a more stable environment before re-entering the market.
Retail participation has also declined, as Google search trends and social media engagement related to cryptocurrencies have dropped significantly compared to earlier in the year. This retreat of retail enthusiasm, often a driving force during bull runs, signals that the market may not see a strong rebound until broader confidence returns.
In summary, the crypto market is currently navigating a complex web of technical breakdowns, macroeconomic headwinds, and fading investor confidence. While there may be potential catalysts on the horizon, such as Nvidia’s earnings or dovish signals from the Fed, the path to recovery remains uncertain. For now, sentiment remains fragile, and traders are bracing for further volatility in the days ahead.