SINGAPORE/LONDON, Nov 21, 2025 – Bitcoin dropped to a seven-month low on Friday, closing near the critical $80,000 level, raising concerns among analysts of potential heavier losses for the world’s largest cryptocurrency. Ethereum also hit a four-month low, highlighting a broader risk-off sentiment in the cryptocurrency market.

The fall comes amid growing investor caution over high tech valuations and uncertainty around near-term U.S. interest rate cuts, prompting a broader flight from riskier assets. Bitcoin fell to $80,553, while Ether slid sharply, erasing much of its gains earlier this year.

Crypto Market Loses $1.2 Trillion

According to CoinGecko, the global cryptocurrency market has lost $1.2 trillion in the past six weeks, reflecting heightened volatility and investor anxiety. Analysts note that Bitcoin’s decline follows a record single-day slump last month, when over $19 billion of positions were liquidated.

“Bitcoin is now approaching levels that corporate and institutional investors paid for their holdings, which could force some to sell to prevent further losses,” said Citi analyst Alex Saunders, highlighting the importance of the $80,000 support level.

Impact on Crypto Treasury Companies

The decline has significant implications for crypto treasury companies, which have been major buyers of Bitcoin and other digital assets this year. These firms hold cryptocurrency on their balance sheets with the expectation of price appreciation.

• Standard Chartered estimates that a drop below $90,000 could leave half of these companies’ holdings underwater, meaning the assets are worth less than their purchase price.
• Collectively, listed companies hold 4% of all Bitcoin and 3.1% of Ether in circulation.

Market analysts warn that these firms may need to raise new funds or sell crypto assets, adding downward pressure on prices. Brent Donnelly, president at Spectra Markets, said: “The procyclical nature of Bitcoin treasury companies is fully obvious now—they buy high and are now forced to sell low.”

Exchange-Traded Funds and Institutional Pressure

Bitcoin-focused ETFs are also approaching key levels, with $80,000 representing the average holdings in several ETFs. Institutional investors could trigger further selling if prices breach this level.

• Strategy (MSTR.O), a leading crypto treasury firm, has seen its shares drop 61% since July, leaving them down nearly 40% year-to-date.
• Japanese peer Metaplanet (3350.T) has fallen roughly 80% from its June peak.

Historical trends suggest the potential for continued volatility: Bitcoin sell-offs in 2018 and 2022 saw declines of 75–80%, implying the digital asset could drop as low as $25,000 if history repeats.

Bitcoin and Market Sentiment

Bitcoin’s recent plunge is also a reflection of overall market risk sentiment, with investors retreating from high-volatility assets. Tony Sycamore, market analyst at IG, noted: “If it’s telling a story about risk sentiment as a whole, then things could start to get really, really ugly, and that’s the concern now.”

Despite this correction, analysts caution that such drawdowns are a recurring feature in Bitcoin’s history and part of the high-risk, high-reward dynamics of digital assets.

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Key Takeaways:

• Bitcoin nears $80,000 amid risk-off sentiment and uncertainty over U.S. interest rates.
• Ether hits a four-month low, contributing to a $1.2 trillion loss across the crypto market.
• Crypto treasury companies face potential losses, with significant holdings at risk.
• ETFs and institutional investors could amplify selling pressure if key support levels break.
• Historical drawdowns suggest that 75–80% losses are possible but part of the crypto market cycle.