Bitcoin Price Analysis: BTC Plunges To $82,000 Amid Market Bloodbath
Bitcoin’s (BTC) selloff has intensified as it plunged to a low of $80,524 on Friday. Analysts have stated that the flagship cryptocurrency has entered the most bearish phase of the current cycle as institutional interest fades and key indicators turn negative. Some analysts believe the current prices signal the end of the current market cycle.
BTC’s decline appears to be driven by a mix of liquidations, profit-taking, and renewed macroeconomic uncertainty. According to analysts, BTC’s plunge below $90,000 has triggered automatic sell orders, pushing prices even lower.
Market Makers Fueling Crunch
Tom Lee, Chairman of BitMine Immersion Technologies, believes the downward pressure on the crypto market is the result of big gaps in the balance sheets of market makers. Lee suggested that the October 10 market crash, which led to a record $20 billion in liquidations, caught market makers off guard, leading to significant liquidity issues. Lee stated,
“With less capital to operate, combined with reduced capital from traders as their primary source of revenue, it’s a tough time for market makers. As a result, this has also led them to shrink their balance sheet further in a bid to free up more capital. And if they’ve got a hole in their balance sheet that they need to raise capital, they need to reflexively reduce their balance sheet, reducing trading. And if prices fall, they’ve got to do more selling then. So I think that this drip that’s been taking place for the last few weeks in crypto reflects this market maker crippling.”
Lee compared market makers to central banks and suggested the market could face more pain for a few weeks until liquidity issues are sorted.
“Today’s stock market looks a lot like an echo of what happened on October 10th. But on October 10th, that liquidation was so big […] it really crippled market makers. And market makers are critical in crypto because they provide liquidity. I mean, they act almost as the central bank in crypto.”
Spot Bitcoin ETF Outflows Continue
US spot Bitcoin ETFs snapped a five-day outflow streak on Wednesday, recording $75 million in total inflows. However, the inflows were negligible compared to the over $500 million in outflows recorded the previous day. According to data from CoinShares, crypto ETFs recorded over $2 billion in outflows last week, the highest weekly figure since February. Bitcoin ETFs have shed over $3 billion since November, putting them on track for one of the weakest months on record.
Markets are bracing themselves for an uncertain December Federal Reserve meeting, following the government shutdown’s delay of key labor and market data. Expectations of a rate cut have also fallen, while minutes from the October meeting revealed a highly divided committee.
Liquidity has also become a concern, with analysts noting that the same conditions contributed to BTC’s sharp November drop.
Spot Bitcoin ETFs logged net outflows of over $900 million on November 20, marking the second-largest outflows since their inception in January 2024. The outflows came after the ETFs registered inflows of $70 million on November 19. BlackRock’s iShares Bitcoin Trust (IBIT) led the capital exodus, reporting an outflow of $350 million on November 20, followed by Grayscale’s GBTC with $199 million.
According to analysts, the outflows point to “risk-off positioning” with large investors booking profits as the year closes. Rachael Lucas, crypto analyst at BTC Markets, stated,
“Institutional investors are leading the charge, with ETF outflows signalling profit-taking and risk-off positioning.”
Strategy At Risk Of Being Dropped By Major Indices
Michael Saylor’s Strategy risks being dropped from major benchmarks that helped put its Bitcoin bet into mainstream portfolios. According to a note by JPMorgan analysts, Strategy risks being dropped from MSCI USA and the Nasdaq 100, speculating that the MSCI removal alone could trigger $2.8 billion in outflows. Passive funds tied to Strategy account for nearly $9 billion in market exposure. JPMorgan analysts stated,
“While active managers are not obligated to follow index changes, exclusion from major indices would certainly be viewed negatively by market participants.”
Bitcoin (BTC) Price Analysis
The crypto market was routed today, wiping billions within hours. Bitcoin (BTC) faced an intense selloff that pushed it to a low of $80,534. The flagship cryptocurrency is down over 8% in the past 24 hours, and nearly 12% over the past week.
According to analytics platform CryptoQuant, BTC is in its most bearish phase of the current cycle as institutional demand dries up and key market indicators indicate a downtrend. The analytics platform’s Bull Score Index has declined to 20/100, and BTC has fallen lower than its 365-day moving average. Corporate demand has also waned, even with Strategy’s latest purchase of 8,178 BTC worth $835 million. This is the company’s largest acquisition since July 2025, but it remains significantly smaller than previous major purchases. CryptoQuant Head of Research, Julio Moreno, stated,
“ETFs have been net sellers of Bitcoin; they are not absorbing any supply. Treasury companies have basically stopped buying; some have even sold part of their holdings. Strategy’s 8K BTC buy is small compared to previous ones.”
Meanwhile, veteran trader Peter Brandt believes Bitcoin won’t reach $200,000 before the end of the year, arguing it will take four more years to reach the milestone.
“The next bull market in Bitcoin should take us to $200,000 or so. That should be in around Q3 2029.”
Brandt’s prediction contrasts with predictions by BitMEX co-founder Arthur Hayes and BitMine Chair Tom Lee, who predicted the flagship cryptocurrency would reach $200,000 by the end of the year.
BTC’s decline has been attributed to a mix of liquidations, profit-taking, and renewed macro uncertainty. The flagship cryptocurrency’s drop below $90,000 has triggered automatic sell orders, driving prices even lower and dragging the rest of the market with it.
BTC ended the previous weekend in positive territory, rising over 2% and settling at $104,694. The price continued pushing higher on Monday, rising 1.23% to cross $105,000 and settle at $105,979. BTC reached an intraday high of $107,482 on Tuesday. However, it lost momentum as bear market conditions set in. As a result, it fell nearly 3% and settled at $103,009. Sellers retained control on Wednesday as the price fell 1.33% to $101,639. BTC faced substantial selling pressure and volatility on Thursday. As a result, it slipped below the crucial $100,000 mark, falling to a low of $97,870 before settling at $99,614. Selling pressure intensified on Friday as the price plunged over 5%, falling to a low of $93,951 before settling at $94,503.
Source: TradingView
Despite the overwhelming selling pressure, BTC recovered on Saturday, rising 1.10% to reclaim $95,000 and settling at $95,544. Selling pressure returned on Sunday as BTC fell to a low of $92,943 before settling at $94,183, ultimately dropping 1.42%. Bearish sentiment persisted on Monday as the price fell by over 2% and settled at $92,100. Selling pressure intensified on Tuesday as BTC slipped below $90,000, falling to an intraday low of 89,183. However, it rebounded from this level to reclaim $90,000 and settle at $92,914, ultimately rising nearly 1%. BTC slipped below $90,000 again on Wednesday, falling to a low of $88,483 before settling at $91,461. Selling pressure intensified on Thursday as the price dropped by over 5% and settled at $86,536. BTC plunged to an intraday low of $80,524 during the ongoing session, before recovering and moving to its current level of $84,000.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.