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Bitcoin Hits Six-Month Lows as Traders Rush for Downside Protection

A wave of liquidations alongside heavy exchange inflows reinforces a risk-off slide tied to fading Fed-cut hopes.

Overview

  • Bitcoin fell to about $91,158 at its intraday low and hovered in the low $90,000s, erasing its 2025 gains and marking the weakest levels since spring.
  • Derivatives stress intensified with more than $900 million in positions wiped out in 24 hours, including over $550 million in longs, as options demand clustered around $90,000, $85,000 and $80,000 strikes with roughly $740 million in late‑November puts.
  • On-chain data showed capitulation signals, including roughly 65,000 BTC sent to exchanges at a loss on Nov. 15 and an Extreme Fear reading of 10 as Bitcoin-related social chatter spiked.
  • Flows and macro added pressure, with crypto funds reporting over $1 billion in early‑November outflows and ETFs shedding about $1.8 billion last week, while risk sentiment deteriorated on lower odds of a December rate cut and AI/tech weakness.
  • Selective buying persisted as Strategy/MicroStrategy disclosed an 8,178 BTC purchase and El Salvador added 1,091 BTC, even as crowded shorts left scope for a sharp squeeze if spot demand reappears near the $94,000–$90,000 zone.