Bitcoin Drops 11% Crypto Free-Fall with OSF and Wizard of SoHo

Bitcoin slides below key levels as selling pressure hits major coins and crypto-linked stocks

Crypto markets moved sharply lower as Bitcoin fell through closely watched price levels, dragging major tokens and crypto-related equities into the red. During the session, Bitcoin traded around $89,500, while Ethereum fell to roughly $3,160.

The decline extended beyond the two largest cryptocurrencies. Over the last 24 hours, XRP fell to $1.99, BNB to $864, and Dogecoin to $0.13. Cardano was among the weakest major assets, down more than 11%. Market watchers noted that while volume ticked slightly higher, price action suggested selling pressure was stronger than recent sessions.

Crypto-linked stocks also fell amid signs of softer trading activity. Strategy (MSTR), which is known for its Bitcoin-focused treasury strategy, dropped 6.4%. Coinbase fell 5% and Robinhood slid 8.3%, with weakness tied to muted crypto trading volume in November. Bitstamp—the exchange Robinhood agreed to acquire earlier this year—also saw volumes fall 11%.

Analysts pointed to a familiar macro catalyst: markets sliding ahead of the Federal Reserve’s meeting. Some said the anticipated rate cut was already priced in, leaving crypto vulnerable as investors refocused on risks including sticky inflation and the approaching 2026 election cycle. Separately, the prospect of a cut accompanied by hawkish commentary was seen as a headwind for a year-end rebound.

Commentary around positioning also played a role. Sigel described the move as a leverage-driven selloff, while maintaining a long-term bull case for the asset class.

The drawdown comes after a period of heavy institutional and corporate accumulation. Bitcoin and crypto treasury companies have bought around 1 million bitcoin worth almost $100 billion this year, a pace that rivals demand from bitcoin ETFs, which now hold about 1.5 million bitcoin. At the same time, bitcoin’s volatility has remained elevated: Reuters described 2025 as a year of record highs and sharp reversals, with bitcoin at risk of posting its first annual decline since 2022.

Market structure has also made crypto sensitive to broader risk sentiment. Because Bitcoin often trades like a high-beta risk asset, weakness in other risk-heavy corners of markets—such as AI-related equities—can spill into digital assets.

• What happened: Bitcoin fell below key psychological and technical levels as broad selling hit majors.
• What it hit: Major tokens dropped and crypto-linked stocks slid alongside weaker reported trading activity.
• Why it matters: The move highlights crypto’s sensitivity to macro expectations and leverage, even after a year of strong ETF and treasury-company accumulation.