Bitcoin closed out November 14 with its weakest performance since early May, sinking below $96,000 as global risk appetite continued to evaporate. What initially looked like a routine pullback has now taken on the shape of a deeper sentiment shift, tied directly to fading expectations of a December Federal Reserve rate cut. The crypto market — often energized by optimism in equities — instead found itself pulled into a synchronized downturn as investors rebalanced ahead of next week’s data releases following the U.S. government’s 43-day shutdown.

The decline was felt far beyond Bitcoin. Ether slipped to a ten-day low, while the broader crypto market shed more than $1 trillion in value since early October. Analysts note that Bitcoin has formally entered bear-market territory, down more than 20% in just over a month. Heavy redemptions in crypto ETFs accelerated the move, with nearly $870 million in outflows recorded in a single day. On-chain data from Glassnode and CryptoQuant also revealed a surge in long-term holder profit-taking — more than 815,000 BTC unloaded in 30 days, marking the most aggressive selling wave since early 2024.

Market strategists say the downturn reflects structural tension rather than emotional selling. As the probability of a near-term rate cut shrank from 90% to around 40%, investors exited high-volatility assets and rotated into safer positions. Federal Reserve officials, including Kansas City Fed President Jeffrey Schmid, reinforced this pivot by signaling ongoing concerns about inflation — making rapid easing less likely. Without a strong macro tailwind, Bitcoin’s correlation to equities turned into a liability instead of a growth lever.

Despite the red screens, some analysts argue that the pullback may help reset overheated expectations after months of momentum-driven trading. Others warn that the selling pressure from long-term holders — historically the most resilient cohort — could extend volatility into December. Whether Bitcoin stabilizes above support levels or slips toward a deeper correction now depends less on crypto-native catalysts and more on macroeconomic clarity.

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