Bitcoin Plunges Below $90K, Sparks Crypto Stock Sell-Off

Bitcoin’s sharp drop below $90,000 on November 18, 2025, wiped out billions in market value and rattled investors worldwide. This plunge, fueled by massive ETF outflows and economic jitters, hit crypto stocks hard, with giants like Coinbase and MicroStrategy taking big losses. What’s driving this chaos, and could more pain lie ahead?

Bitcoin fell to a seven-month low of around $89,000 early on November 18, erasing much of its gains from earlier in 2025. Traders pointed to uncertainty over U.S. Federal Reserve interest rate cuts as a key trigger, with broader stock markets also stumbling. Over $1 billion in crypto positions got liquidated in just 24 hours, adding fuel to the fire.

This isn’t just a random dip. Spot Bitcoin ETFs, which had been a major support for prices, saw $1 billion in net outflows over the past week. That’s the fourth-worst outflow period on record, according to data from investment trackers. Without that steady buying from big institutions, prices crumbled fast.

Many analysts blame profit-taking by large holders, or “whales,” who sold off holdings amid the uncertainty. One report from CryptoNews highlighted how this slide sent ETF investors into their first major losses since the products launched.

Fear is running high. The Crypto Fear and Greed Index dropped to 11, signaling extreme fear among traders.

Heavy Hits to Crypto Stocks

Crypto-linked stocks felt the pain right away. Coinbase, the biggest U.S. crypto exchange, saw its shares slide more than 5% in a single session, extending a rough streak.

MicroStrategy, known for its huge Bitcoin holdings, wasn’t spared either. Its stock, ticker MSTR, dropped sharply despite founder Michael Saylor announcing a fresh purchase of 8,178 Bitcoin tokens. That buy, worth hundreds of millions, shows some players are still betting big on a rebound, but the market mood stayed sour.

Other firms tied to crypto took hits too. The broad sell-off erased about $1 trillion from the total crypto market cap since October highs, per Cointelegraph data.

Here’s a quick look at how key stocks reacted:

• Coinbase (COIN): Down 5.3% amid heavy trading volume.
• MicroStrategy (MSTR): Fell 6%, even with the new Bitcoin buy.
• Riot Platforms (RIOT): Slipped 4%, hit by mining woes.

This reaction underscores how tightly crypto stocks are linked to Bitcoin’s price swings.

Investors are watching closely. One industry leader told Reuters that this could be a “liquidity event” rather than a fundamental shift, but uncertainty lingers.

Mining Stocks Face Mixed Fortunes

Mining companies, which secure the Bitcoin network by solving complex puzzles, showed a patchwork of results. As Bitcoin’s price tanked, the hashprice – a measure of mining revenue per unit of computing power – hit multi-month lows.

Some miners like Riot and Marathon Digital held up better, thanks to strong balance sheets. But others struggled as network difficulty stayed high, squeezing profits.

A plunge in hashprice to levels not seen since April has forced some miners to sell Bitcoin holdings just to stay afloat.

Data from The Crypto Basic shows Bitcoin’s drop wiped out year-to-date gains for many in the sector. Yet, not all news is bad. El Salvador, a country that’s all-in on Bitcoin, scooped up $100 million worth during the dip, signaling confidence from some quarters.

One X post from a trader noted how whale wallets actually grew by 2.2% recently, with more big players accumulating.

This mixed bag highlights the risks for miners. If prices stay low, smaller operations could shut down, but bigger ones might snap up cheap assets.

What This Means for the Future

Looking ahead, experts are split. Some, like Arthur Hayes, a former BitMEX CEO, predict Bitcoin could dip to $80,000-$85,000 before bouncing back. He blames liquidity issues, not core problems with crypto.

Others see hope in ongoing institutional interest. MicroStrategy’s latest buy and reports of central banks dipping toes into Bitcoin suggest long-term support.

Fed rate decisions loom large. If cuts come slower than expected, risk assets like crypto could suffer more. But a surprise policy shift might spark a rally.

Traders are eyeing key levels. Bitcoin needs to climb above $94,000 to rebuild bullish momentum, according to Coinpedia analysis.

Volatility is the name of the game. With Nvidia’s earnings report due November 20, tech stocks could drag crypto further if they falter.

This Bitcoin crash reminds us how quickly fortunes can change in crypto. It shakes out weak hands but often sets the stage for stronger recoveries. Investors who bought during past dips, like the 2022 bear market, saw massive gains later. Yet, this time, with ETFs in the mix, the game feels different. Retail traders are panicking, but smart money seems to be stacking up. The drop has hit everyday investors hard, potentially delaying crypto’s mainstream push and making people rethink their portfolios. But it also opens doors for bargains if you’re bold.