Bitcoin Hits Six-Month Low: How Pros Are Navigating the AI Fear Factor (November 2025 Update)
- Why Is Bitcoin Crashing Alongside AI Stocks?
- Liquidations Hit $900M—Should You Panic?
- Whale Watch: Who’s Buying the Dip?
- Options Market Stays Shockingly Chill
- 3 Reasons the Bottom Might Be Near
- The AI-Bitcoin Tango: Temporary Pain or New Normal?
- Q&A: Your Burning Bitcoin Questions Answered
Bitcoin’s recent plunge to $94,120—its lowest level in six months—has sent shockwaves through crypto and tech markets. While AI-driven mining strategies once promised record profits, growing skepticism about inflated AI valuations is now dragging bitcoin down. This article unpacks the sell-off’s triggers, analyzes whale movements, and reveals why options traders remain oddly calm. Spoiler: It’s not all doom and gloom—smart money is already bargain-hunting.
Why Is Bitcoin Crashing Alongside AI Stocks?
This week’s 11% Bitcoin slump mirrors a broader tech sector panic. The culprit? A perfect storm of AI skepticism. Michael Burry (yes, the "Big Short" legend) recently accused AI firms of creative accounting, sparking a domino effect. When growth sectors stumble, speculative assets like Bitcoin often catch the flu—even as institutional adoption grows. Data from TradingView shows BTC’s 90-day correlation with AI stocks has surged to 0.78, the highest since 2023.
Liquidations Hit $900M—Should You Panic?
While $900M in long positions got wiped out, that’s just 2% of Bitcoin’s liquid market depth. Compare this to October’s leverage massacre, and today’s pullback looks almost polite. The BTCC research team notes open interest remains 18% above pre-crash levels—a sign traders are treating this as a buying opportunity rather than capitulation.
Whale Watch: Who’s Buying the Dip?
Blockchain sleuths spotted two fascinating trends since Wednesday:
- Market makers aggressively scooped up BTC below $100K
- Institutional wallets slashed leveraged positions at $98K
This divergence explains why the Fear & Greed Index shows "panic" while derivatives traders sip margaritas. As one BTCC analyst quipped: "When whales can’t agree, retail gets seasick."
Options Market Stays Shockingly Chill
The options fear gauge barely budged, hovering at 10% vs. last month’s 16% peak. For context: When BTC lost 25% from its ATH and options traders yawned in 2021, it preceded a 68% rally. History doesn’t repeat, but it often rhymes.
3 Reasons the Bottom Might Be Near
- Controlled liquidations: No cascade margin calls (yet)
- ETF outflows stabilized: $1.2B exited last week vs. $1.8B in October
- Hash rate resilience: Miners aren’t capitulating
The AI-Bitcoin Tango: Temporary Pain or New Normal?
Here’s the uncomfortable truth—Bitcoin won’t shake off AI volatility until either sector finds footing. But remember: In 2023, when crypto and AI first held hands during the banking crisis, both rallied 200%+ within months. As CoinMarketCap data shows, unnatural bedfellows sometimes make the strongest couples.
Q&A: Your Burning Bitcoin Questions Answered
Is this Bitcoin crash worse than 2022?
Not even close. The 2022 bear market saw 75% drops, while this is just a 25% correction from ATHs. Different animals.
Should I sell my Bitcoin now?
This article does not constitute investment advice. That said, history favors those who buy when headlines scream "crisis."
How low could Bitcoin go?
Key support sits at $88K (2025’s volume-weighted average price). Below that, $78K becomes likely.
