Why Bitcoin Is Sliding, and Whether This Pullback Is a Buying Opportunity

Bitcoin Pullback Explained: Panic Signal or Prime Entry Point?

Bitcoin (BTC-USD), often dubbed the digital gold standard, has seen a wave of volatility this month as fear-driven sentiment gripped the market. According to CoinMarketCap’s Fear and Greed Index, investor mood has shifted sharply toward fear, coinciding with Bitcoin falling below A$90,000, a steep drop from its October highs above A$100,000. This 27% pullback marks Bitcoin’s weakest monthly performance since the 2022 bear market and its first break below the key psychological threshold since mid-April.

According to Yahoo Finance, since the total crypto market capitalisation peaked at nearly $4.4 trillion in October 2025, it has declined by approximately 20–30%, wiping out between $1 trillion and $1.3 trillion in value as of November 24, 2025, dragging major altcoins lower in a broad risk-off move. From our perspective, this latest slide reflects a mix of macro caution, profit-taking after a strong run, and renewed uncertainty around regulatory and liquidity trends. For long-term investors, it’s a reminder that while BTC continues to cement its role as a digital store of value, its path remains highly cyclical, where fear and opportunity often appear side by side.

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BTC Slides as Macro Headwinds Hit Risk Assets: Safe Haven No More

One of the key factors driving Bitcoin’s sell-off is the broader macro environment. While Bitcoin was originally viewed as a safe-haven asset, a digital version of gold, it has increasingly become a momentum-driven trade, dominated by short-term sentiment rather than the long-term thesis of a store of value. As markets began pricing in US Federal Reserve rate cuts by the end of 2025, persistent inflation and stronger-than-expected economic data have shifted expectations, putting pressure on high-beta assets like Bitcoin.

The surge in Bitcoin spot ETFs has also amplified volatility. With large inflows over the past year, these funds provide liquidity but also enable faster and larger sell-offs when sentiment turns negative. This is not a flaw but a natural feature of institutional participation in crypto markets.

Importantly, this trend extends beyond Bitcoin. Broader risk assets, especially tech stocks, have also seen capital outflows as investors rotate toward safer income-generating assets. The US 10-year Treasury yield hovering around 4.45% makes fixed income increasingly attractive compared to volatile crypto markets. In our view, Bitcoin’s correlation with the Nasdaq reinforces that it still behaves more like a risk-on asset than a true store of value, serving as an early barometer for tech sentiment rather than a hedge against economic uncertainty.

BTC Liquidity Thins

While the macroeconomic backdrop has been a major catalyst behind Bitcoin’s recent downturn, the internal dynamics of the crypto market are equally at play. The introduction of Bitcoin spot ETFs has opened the door for broader institutional participation, driving over A$20 billion in inflows earlier this year and fueling the initial rally. However, as uncertainty around inflation and interest rates has grown, those same institutional investors have begun to pull back. The result is thinner liquidity and sharper price swings, where even moderate selling can trigger outsized declines.

BTC Faces A$75k Test, but Bull Market Signals Remain Intact

In the short term, Bitcoin could test the A$75,000–A$80,000 range if Treasury yields continue to rise or ETF outflows persist. On the upside, a rebound toward A$88,000 by month-end remains possible if sentiment stabilises. From a longer-term view, the fundamentals still point to strength. The Bitcoin network’s hash rate sits at record highs, and institutional adoption continues to expand, reinforcing the idea that this may be a cyclical correction within an ongoing bull market. Models like PlanB’s still project potential upside beyond A$120,000 by year-end, but sustained macro tightening could keep investors cautious for a while longer. (take these estimations with a grain of salt)