Bitcoin Falls Below $89,000 Amid Growing Macroeconomic Pressure
Date: 2025-11-20 Author: Gabriel Deangelo Categories: CRYPTO PAYMENTS
Bitcoin came under significant pressure mid-Wednesday, falling nearly 5% to around $88,800. Trading activity remained sluggish, and market participants' attention shifted to the upcoming US labor market report, which was delayed this time due to the government shutdown.
Analysts note that the cryptocurrency has lost several important support levels, which are now turning into obstacles to any possible recovery. Rob Ginsberg, a specialist at Wolfe Research, emphasized that significant breakouts have triggered a transition from bullish expectations to a phase of uncertainty, with no quick solutions in sight.
The situation is further complicated by statements from Federal Reserve officials in recent days, who have pointed to weak and uneven progress in the fight against inflation. These harsh comments have reduced the likelihood of an imminent rate cut, which traditionally puts pressure on digital assets. The release of the September employment report will be an important benchmark for the market and could influence Bitcoin's future direction.
Adding to the uncertainty is US President Donald Trump's statement that he has already chosen a candidate to chair the Fed and may announce his decision soon. Although the current chairman, Jerome Powell, doesn't serve until the spring of 2026, the potential leadership change has alarmed investors concerned about the regulator's independence.
Meanwhile, other significant events are unfolding in the crypto market. Kraken exchange announced it has raised $800 million in a new funding round, valuing the company at $20 billion—a third higher than its recent valuation. Key participants included Jane Street, HSG, Oppenheimer Alternative Investment Management, Tribe Capital, and Citadel Securities. The raised capital will accelerate the expansion of the exchange's products, including tokenized assets, futures, equities, and payment solutions.
Another notable event was the record outflow from BlackRock's iShares Bitcoin Trust. According to Farside Investors, $523 million left the fund in a single day—the highest amount since its inception. This coincided with Bitcoin's fall below $90,000 and subsequent weakening to its lowest levels in seven months. Despite continued profitability, the fund, which manages over $73 billion in assets, lost approximately 19% in the second quarter.
Amid heightened risk aversion, most altcoins moved moderately. Ethereum held near $3,080, XRP saw a slight decline, while Solana and Cardano remained stable. Among meme tokens, Dogecoin and $TRUMP saw slight gains.
The overall market sentiment remains tense, and future trends will largely depend on macroeconomic data and the Federal Reserve's announcement in the coming days.
