Bitcoin News Today: The Significant Impact of Institutions Intensifies Bitcoin's Drop to $86,722

Bitcoin Slides Below $87,000 Amid Market Turmoil

Bitcoin has dropped to $86,722, breaking through significant psychological barriers and sparking renewed fears about increased selling from major investors. This marks the first time since May 2025 that the cryptocurrency has slipped under $100,000. Over the course of November, Bitcoin has shed 20% of its value, reflecting a broader downturn in financial markets fueled by global economic uncertainty and shifting investor attitudes.

Potential for Large-Scale Liquidations

Market experts are closely watching to see if this sharp decline will prompt widespread sell-offs by institutions and corporations that accumulated substantial Bitcoin holdings during the past year. The current price movement comes at a crucial moment for international monetary policy. According to the CME FedWatch tool, there is now an 80% chance of a rate cut by the Federal Reserve in December, following a period of heightened volatility. This shift has rattled risk assets and contributed to Bitcoin’s downward spiral. Victoria Scholar, head of investment at interactive investor, noted that Bitcoin’s correlation with equities is increasing, leading investors to reduce their speculative positions. She identified $80,000 as the next key support level, warning that a break below this threshold could trigger further selling, especially from those who entered during the 2024 rally.

Institutional Influence and Market Volatility

The involvement of large institutions has intensified Bitcoin’s price swings. As of November 2025, companies and governments collectively hold 17% of the total 21 million BTC supply, with exchange-traded funds (ETFs) alone representing 7%. The rise of corporate Bitcoin treasuries and ETFs has concentrated ownership, giving significant influence to a handful of large players. For instance, XRP spot ETFs have attracted $644 million in new investments this month, as investors seek more regulated alternatives amid Bitcoin’s instability. This trend underscores a broader shift: institutions are increasingly favoring products with clearer regulatory oversight, which could further reduce Bitcoin’s liquidity during market downturns.

Corporate Holdings and Market Risks

Corporate exposure to Bitcoin adds another layer of complexity. Inspired by Michael Saylor’s aggressive Bitcoin acquisition strategy, 357 companies now list Bitcoin on their balance sheets. However, if prices continue to fall, some of these firms could face margin calls. Crypto investment firm Strategy recently revised its year-end Bitcoin price forecast to a range of $85,000–$110,000, down from $150,000, and now projects operating results that could swing from a $7 billion loss to a $9.5 billion profit. These adjustments highlight the vulnerability of leveraged positions, where even modest price changes can set off a chain reaction of forced liquidations.

New Projects and Fixed-Supply Initiatives

Solana Faces Its Own Downturn

The Solana ecosystem is also under pressure. SOL has dropped 5% in a single day, with derivatives data revealing a 6.17% decrease in open interest and a negative funding rate, indicating bearish sentiment. This decline echoes Bitcoin’s weakness, as risk aversion spreads across the digital asset market.

Key Events Ahead: Federal Reserve and Options Expiry

Looking forward, the Federal Reserve’s decision in December will be crucial. A rate cut could help stabilize Bitcoin by lowering borrowing costs and reviving risk appetite, while a delay might intensify the selloff. Institutional investors are likely to hedge their positions using options and futures, with $15.4 billion in Bitcoin and Ethereum options set to expire this week. The outcome of these expiries could determine whether Bitcoin can maintain support at $80,000 or faces further downward pressure.