- Bitcoin’s drop below $80K prompts analysts to foresee further flush.
- Market volatility could lead to $70K support test.
- Institutional investors increase exposure amid large-scale liquidations.
Bitcoin’s price dropped below $80,000 in November 2025, triggering warnings of a potential final leverage flush and large-scale liquidations in the cryptocurrency market.
The event highlights investor anxiety over leverage exposure, with potential market bottoms indicated by historical patterns, as institutional players increase capital deployment despite significant volatility.
Bitcoin’s price slipped below the $80,000 mark in November 2025, triggering alerts of a potential “final leverage flush.” Alongside significant liquidations, opinions remain divided over whether new price floors will be tested.
Market observers noted large funds, including Harvard and Japan’s Metaplanet, raising exposure. Analysts suggested further declines to the $70K-$80K zone are plausible, as noted on platforms like TradingView.
Immediate effects included over $1 trillion in market capitalization disappearing, driven by significant spot BTC ETF outflows. Meanwhile, institutional players injected new capital, implying strategic confidence aside from potential short-term losses.
Financial ramifications included a sharp reduction in BTC futures open interest, highlighting a substantial leverage retreat. Negative perpetual funding rates and the largest-ever daily crypto leverage liquidations further distinguished this market disturbance.
Historical parallels indicate such flushes often precede market recoveries, creating increased anticipation amongst investors. However, analysts like Peter Brandt caution that risks persist until leverage fully purges.
“If the leverage remains unpurged, we could see further sharp, transient drawdowns before the macro uptrend resumes.” – Peter Brandt, Veteran Technical Analyst
Insights suggest steadfast institutional support could mitigate market instability. Data from past cycles and current conditions underline an anticipated recovery, though regulatory clarity remains deferred, with no new guidance issued by institutions like the SEC.
