Why Bitcoin Dropped From $120K to $87K in November 2025 & Whether It Can Fall Below $60K

Introduction

Bitcoin’s shocking fall in November 2025 has stunned the entire crypto world.
Just weeks earlier, BTC was celebrating its historic $120,000 all-time high, fueled by ETF inflows, mainstream excitement, and the ongoing crypto supercycle. But out of nowhere, the king of crypto tanked to $87,000, wiping out billions in market value and triggering panic across exchanges globally.

Traders, analysts, and retail investors are all asking the same question:

Why did Bitcoin fall so sharply?
Is the crash temporary?
And most importantly — will BTC fall below $60,000?

This in-depth DropFinder Analysis breaks down the exact reasons, the real triggers, and the future price possibilities.

1. Bitcoin Was Extremely Overbought After Reaching $120K

BTC did not fall randomly.
It fell because it became overheated.

By late October and early November 2025:

• Bitcoin broke past $100K

• The fear-greed index hit extreme greed

• Influencers were calling for $200K

• Millions of new retail investors were entering

• Leverage on futures hit dangerous levels

When the entire market expects unlimited upside, a correction becomes unavoidable.

Bitcoin’s rise from $70K to $120K happened too fast, too aggressively, and without sustainable consolidation.
Such vertical pumps always end in harsh retracements.

The November correction was simply the breaking point of an overstretched rally.

2. Massive Profit-Taking From Institutions Triggered the First Drop

When BTC hit $120,000, major institutional investors and ETF giants instantly began securing profits.

These included:

• Bitcoin ETF providers

• Asset management firms

• Hedge funds

• Treasury-based BTC holders

Their reasons were simple:

• Lock in gains after a 75% run-up

• Reduce exposure ahead of macro uncertainty

• Rebalance portfolios before year-end reporting

Once institutions sold even 1–2% of their BTC holdings, it created:

• Sharp price dips

• High volatility

• Panic among retail

• A chain reaction across centralized and decentralized exchanges

This is why the first fall from $120K → $110K happened so quickly.

3. Global Interest Rate Uncertainty Made Investors Nervous

Bitcoin thrives when interest rates fall.
But in late 2025, central banks made it clear:

• Rate cuts are not happening soon

• Inflation is still above target

• Bond yields are rising again

Higher interest rates push investors away from risk assets like crypto and into safer options such as:

• Government bonds

• Treasury notes

• Blue-chip stocks

As yields rose, institutional money flowed out of BTC — adding more selling pressure.

This macro shock was one of the biggest contributors to the crash.

4. Over-Leverage in Futures Caused a Massive Long Squeeze

This is where the real bloodbath began.

In early November 2025:

• Millions of traders opened leveraged long positions

• Many expected BTC to go straight to $150K–$200K

• 25x, 50x, and even 125x positions surged

When BTC dropped even slightly:

• Longs started liquidating

• Liquidations triggered more selling

• More selling triggered more liquidations

• A rapid long squeeze smashed the market

This long-squeeze crash is what pushed BTC from:

$110K → $95K → $87K

in just a few days.

5. Miner Selling Created Additional Downward Pressure

Bitcoin miners faced increasing pressure in late 2025:

• Mining difficulty climbed

• Energy costs rose

• Cash flow became tight

• Halving reduced rewards earlier in the year

Many miners started selling BTC to cover operational costs.

This miner capitulation:

• Increased sell pressure

• Weakens market confidence

• Makes dips deeper and more volatile

When miners dump, the market shakes.

6. Panic on Social Media Accelerated the Crash

Social media amplified the fear:

• Rumors of exchange insolvency

• Fake news about government crackdowns

• Influencers calling for a crash

• Retail traders flooding with panic tweets

FUD spreads 10x faster when the market is already weak.

Retail panic selling added another layer of downward momentum.

7. Why Bitcoin Stopped Falling at Around $87K

The $87K level became temporary support for several reasons:

1. Whale accumulation

Big investors quietly accumulated BTC between $82K–$90K.

2. ETF-based buybacks

Some ETFs re-balanced and bought dips.

3. Strong technical support zones

$85K–$90K was previously a resistance zone, which turned into support.

4. Reduced leverage after liquidation wipeout

After billions in liquidations, the market became healthier.

This stabilisation is why BTC didn’t crash straight to $70K.

8. Will Bitcoin Fall Below $60K? (Realistic Outlook)

This is the biggest question every trader is asking.

Here is the honest breakdown:

Scenario 1 – Mild Correction (Most Likely)

BTC remains between $80K and $95K for 1–3 months.

Why:

• Whales are accumulating

• ETFs still hold large BTC reserves

• No major FUD event

• Market sentiment slowly recovers

Chance: 55%

Scenario 2 – Deeper Correction to $70K–$75K

This could happen if:

• Fed delays rate cuts further

• ETF outflows increase

• Another long-squeeze occurs

Chance: 30%

Scenario 3 – Extreme Crash to $60K or Below

This is possible only if:

• A major exchange collapses

• A government bans BTC

• A global financial crisis erupts

• A massive miner capitulation event hits

Chance: 15%

9. Why Bitcoin Is Unlikely to Fall Below $60K

Here are strong reasons Bitcoin probably won't drop that low:

1. BTC ETFs create constant buying pressure

Even on bad days, ETFs buy dips.

2. Corporate adoption is stronger than ever

Many companies added BTC to their treasuries in 2024–2025.

3. Whales protect key psychological price zones

Whales do not allow BTC to fall into irrational low levels when they hold huge supply.

4. Bitcoin supply is shrinking

Post-halving, miners produce fewer coins — meaning supply is limited.

5. Global crypto adoption is accelerating

Bitcoin use cases expanded in payments, investment, and institutional portfolios.

For BTC to break $60K, massive catastrophic events must happen — which appear very unlikely.

10. What Should BTC Investors Do Now?

Here’s the smartest approach:

1. Don’t panic sell

Crashes are normal in crypto cycles.

2. Buy the dip but slowly (DCA)

Small systematic buying reduces risk.

3. Focus on long-term horizons

Bitcoin always rewards patient holders.

4. Avoid high leverage

2025 proved high leverage destroys portfolios in minutes.

5. Keep BTC in self-custody

Not your keys, not your coins.

11. What Happens Next? (BTC Outlook for 2026)

If history repeats:

• BTC stabilizes

• Retail confidence returns

• Whales accumulate

• Altcoins recover

• A new bull wave begins

Bitcoin may reattempt its $120K retest by mid-2026, and possibly break $150K in the next phase of the supercycle.

Conclusion

Bitcoin’s fall from $120,000 to $87,000 in November 2025 was not random.
It was caused by:

• Institutional profit-taking

• Rising interest rate fears

• Excess leverage

• Miner selling

• Retail panic

• Overheated market conditions

While the crash shook the market, it did not break Bitcoin’s long-term trend.
BTC remains strong, adoption is rising, institutions are still involved, and fundamentals are healthier than ever.

A drop below $60,000 is possible but unlikely unless a major catastrophic event occurs.

The smartest investors use fear to accumulate — not escape.