Bitcoin price plunges to $85k in long squeeze fallout, ETF outflows, is the worst coming?

Bitcoin price tanked to a 7-month low of nearly $85,000 on Friday as investors holding long positions were caught off guard by a sharp selloff, while outflows from its spot ETFs continued to add pressure.

According to data from crypto.news, Bitcoin (BTC) price dropped 7% to an intraday low of $85,400 on Nov. 21, down 11.6% over the past week and 32% below its all-time high of $126,080 reached in October.

Investors’ appetite for risk-on assets such as Bitcoin continued to wane due to the October flash crash, declining odds of a Fed announcement of a rate cut during the December meeting, and broader concerns across markets due to U.S. President Donald Trump’s ongoing tariff drama.

Bitcoin’s price today was triggered by a wave of long liquidations in what appears to be a classic long squeeze case. According to data from Coinglass, nearly $443 million worth of long positions were liquidated in the past 24 hours, compared to just $26 million in short positions.

Bullish-leaning traders were likely caught off guard by the sudden price drop and were forced to close their positions as losses mounted.

At the same time, investor sentiment toward Bitcoin has been further dampened by persistent outflows from the 12 U.S. spot Bitcoin ETFs.

SoSoValue data show these investment vehicles have logged $1.45 billion in net outflows so far this week, bringing the total net outflows for November to over $3 billion. 

Roughly two months back, the situation was quite the opposite as these funds had recorded net inflows of nearly $7 billion. Traders have perceived this as a sign that Wall Street’s confidence in the asset may be fading.

The continued outflows and sharp price drop have stoked widespread fear among investors. At the time of writing, the Crypto Fear and Greed Index was at 14, indicating a state of extreme fear where it has remained for the past nine days.

Bitcoin price could drop below $80k

Analysts remain divided on where Bitcoin may be headed next. While some market watchers are convinced that a local bottom may be in, others warn that the selloff may have further to go.

According to Kadan Stadelmann, who serves as the chief technology officer at Komodo Platform, Bitcoin could still fall by another $10,000 in the short term before a recovery is in play. 

“It is immensely likely that Bitcoin only declines another $10,000 approximately in the short-term, before rebounding above previous record highs, especially heading into the next halving in 2028,” Stadelmann told crypto.news.

Similarly, Georgii Verbitskii, founder of TYMIO, told crypto.news that the market may be entering a “prolonged bearish period,” and more downside may be on the horizon for Bitcoin.

“Bitcoin looks very weak right now, and the price action we’re seeing a slow, steady decline with small bounces is the worst type of chart structure. This kind of drift usually means the downtrend is likely to continue,”  Verbitskii said.

“Given how the breakdown below $110K played out, the next meaningful support zone sits closer to $80–77K. That’s where a real bottom becomes possible, but we’re not there yet.”