Bitcoin slides to fresh seven-month low of $86,000, market capitalisation hits $1.71 trillion — what's behind the drop?

Bitcoin, the largest cryptocurrency, fell to its lowest level since April on Friday, November 21, reaching a new low of $86,000 amid macroeconomic uncertainty following US jobs data that indicated higher-than-expected unemployment.

Bitcoin prices dropped 7.18% to $85,966.75 at 11:30 am on Friday, November 21, according to CoinMarketCap data. The crypto token's market capitalisation stood at $1.71 trillion. Its trading volume in the last 24 hours was $94 billion. Meanwhile, Ether, the second-largest token, also declined on Thursday, falling 7.92% to $,2797.50.

Why is Bitcoin falling?

US jobs data impact

Experts note that Bitcoin has fallen to its lowest level since April, due to uncertainty in the US macroeconomic landscape. September's jobs data revealed unexpected unemployment and raised concerns about the Federal Reserve's future rate cuts.

According to Ashish Singhal, Co-founder, CoinSwitch, “Bitcoin retreated to the $85,000 level after briefly climbing to $92,000 following Nvidia’s earnings results. This pullback has largely been driven by growing macroeconomic uncertainty in the US. September’s jobs data revealed higher-than-expected unemployment, raising concerns over the strength of the broader economy and potentially influencing the Federal Reserve’s stance on future rate cuts.”

Shift in sentiment

Bitcoin's recent decline reflects a shift in sentiment and suggests potential liquidity stress, indicating increased market pressure, despite large liquidations not being the sole determinant of long-term trends.

According to Avinash Shekhar, Co-Founder & CEO, Pi42, “The recent sell-off of roughly 1.3 billion dollars by an OG whale signals a meaningful shift in sentiment within the Bitcoin ecosystem. Large scale liquidations do not decide the long term trajectory on their own, but they do raise a yellow flag. A holder with more than a decade of accumulation choosing to exit now increases market pressure and draws attention to potential liquidity stress."

What must investors do?

Following the recent fall, Singhal advised investors to exercise caution and avoid making aggressive, emotion-driven decisions. He further recommended investors to adopt a measured approach, focusing on risk management and long-term strategy, which remains crucial as markets respond to ongoing economic signals.

Pressure on Bitcoin

Bitcoin has recently experienced substantial pressure, dropping below $90,000 for the first time in seven months on Tuesday, 18 November. The highly volatile cryptocurrency has now wiped out its gains for 2025. It is almost 30% down from its October peak, which exceeded $126,000, fueled by hopes of several Federal Reserve interest-rate cuts and increased institutional adoption, according to a report by Bloomberg.

Ether also has been under sustained pressure, falling nearly 40% from its August peak above $4,955.

The crypto market has faced difficulty to stabilise after an early-October selloff, which caused over $19 billion in liquidations and wiped out more than $1 trillion from token market capitalisation. Recently, retail participation and dip-buying, particularly in speculative altcoins, have decreased, the report noted.

Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.