Crypto sell-off deepens: BTC, ETH, SOL, XRP and DOGE under pressure as rate-cut hopes fade
The cryptocurrency market is enduring another sharp downturn, with major tokens sliding as investors retreat from risk assets. The latest wave of selling comes amid growing skepticism that the US Federal Reserve will cut interest rates before the end of the year, tightening financial conditions and draining liquidity from speculative markets.
On Thursday, November 20, Bitcoin (BTC) dropped 2.52% to around $86,585, marking its lowest level since April. Ethereum (ETH) slipped to $2,818, wiping out all gains accumulated since July and reinforcing the view that the recent uptrend has stalled.
Altcoins, as usual, showed even more pronounced volatility. Solana (SOL) retreated from an intraday peak of $144 to about $132, while XRP sank below the key psychological threshold of $2. Dogecoin (DOGE), the largest memecoin by market cap, fell from its daily high of $0.1591 to $0.1473, extending losses as traders cut exposure to higher-risk tokens.
Why crypto is falling: macro pressure and Fed policy
Market observers largely attribute the ongoing slide to macroeconomic forces rather than to any specific negative catalyst from within the crypto industry itself. According to Jamie Elkaleh, CMO at Bitget Wallet, the growing integration of cryptocurrencies into the broader financial system is a double-edged sword.
On the one hand, tighter links with traditional finance increase institutional participation, legitimize digital assets, and improve access to capital over the long term. On the other hand, this integration means crypto is now more sensitive than ever to central bank policy shifts, interest-rate expectations, and overall risk sentiment.
Elkaleh notes that the sharp reduction in market expectations for a Federal Reserve rate cut in December — now estimated in the roughly 33%–50% range — signals a surge in macro uncertainty. When traders scale back their bets on lower interest rates, money becomes more expensive, leverage is less attractive, and appetite for volatile assets such as BTC and ETH tends to fall.
In the short run, diminished hopes for easier monetary policy translate into reduced liquidity, which can weigh on flows into Bitcoin and Ethereum. That, in turn, may trigger a broader “risk-off” mood across digital asset markets and prompt temporary outflows from spot exchange-traded funds that hold BTC and other major coins.
Short-term outlook: weak, but not a total collapse
Analysts emphasize that the near-term setup for crypto remains negative but not disastrous. Bitcoin’s resistance around the $89,000 area had already looked fragile, as the price periodically dipped below that level even before the latest leg down. With that support zone now decisively broken, attention is shifting to lower marks.
Arthur Azizov, founder and investor at B2 Ventures, believes $85,000 is emerging as the next key downside target for BTC. A retest of this level would not necessarily signal a structural breakdown but would underscore how sensitive the market currently is to macroeconomic headlines and shifts in liquidity expectations.
Adding to the pressure, Armando Aguilar, Capital Formation Lead at TeraHash, points to several internal market dynamics amplifying the sell-off. He cites excessive leverage, profit-taking after the most recent rally, and expectations that corporate Bitcoin accumulation may slow in the coming months as factors that are darkening the near-term picture.
Could Bitcoin fall further?
Despite the mounting headwinds, Aguilar does not see the current move as the start of a long-term bear market unless macro conditions deteriorate further. In his view, Bitcoin has room to recover once the dust settles, provided that risk sentiment doesn’t swing decisively against all high-volatility assets.
However, he also warns that a deeper decline toward the $75,000–$78,000 zone becomes more plausible if outflows from crypto funds and spot ETFs accelerate, and if broader markets shift firmly into “risk-off” mode. In such a scenario, forced liquidations, margin calls, and panic selling could push prices below technical support levels, at least temporarily.
For now, the correction remains sharp but orderly. Volumes have risen alongside the move lower, suggesting that a combination of leveraged unwinds and active profit-taking is driving the downturn rather than a single catastrophic event.
Altcoins take a bigger hit than Bitcoin
The latest sell-off once again underlines a familiar pattern in crypto: while Bitcoin often leads market direction, alternative coins tend to experience more violent swings. Solana’s drop from $144 to $132 in a single session highlights how quickly sentiment can reverse when traders rush to reduce risk.
XRP’s slip below $2 is particularly notable because it breaches a psychologically important line that many short-term traders monitor closely. A loss of that level can trigger additional technical selling and stop orders, exacerbating downward momentum.
Memecoins such as Dogecoin are even more vulnerable in this climate. With no fixed cash flows or traditional valuation anchors, their prices depend heavily on speculative interest and social buzz. When liquidity tightens and traders prioritize capital preservation, DOGE and similar tokens are often among the first assets to be sold.
How macro conditions shape crypto pricing
The current environment highlights how crypto has matured from a niche asset class into one that is increasingly intertwined with global markets. When inflation data, jobs reports, or central bank speeches shift expectations around interest rates, digital assets now tend to react in tandem with technology stocks and other growth-oriented investments.
Higher interest rates raise the opportunity cost of holding non-yielding assets such as Bitcoin. At the same time, tighter financial conditions can reduce the amount of speculative capital chasing high-risk opportunities, putting pressure on everything from DeFi tokens to NFT-related projects.
This correlation does not mean crypto has lost its unique characteristics, but it does explain why macro headlines have become crucial for traders. Understanding how monetary policy impacts liquidity and risk appetite is now as important as reading on-chain data or tracking network upgrades.
What this means for long-term crypto investors
For long-term investors, the current drawdown is uncomfortable but not unprecedented. Crypto markets have historically moved in powerful cycles, often experiencing sharp corrections even during broader bull phases. Many long-term holders view such retracements as a test of conviction rather than a definitive trend reversal.
If the Fed eventually signals a more dovish stance or if inflation continues to cool, risk assets — including crypto — could regain momentum. Institutional adoption, ongoing work on spot ETFs, and the gradual tokenization of real-world assets remain key structural themes that many believe will support the market over the coming years.
However, the path is unlikely to be smooth. Volatility is a defining feature of this asset class, and macro shocks, regulatory developments, or large-scale liquidations can rapidly reshape the landscape.
How traders are adjusting their strategies
Short-term traders are already adjusting to the new environment. Many are reducing leverage, tightening stop-loss levels, and shifting from high-beta altcoins toward more established assets like BTC and ETH. Others are increasing their cash positions, waiting for clearer signs that the market has formed a bottom.
Some participants are focusing more on relative value trades within crypto — for example, rotating between sectors such as layer-1s, DeFi, and infrastructure tokens — rather than simply betting on overall market direction. In periods of heightened uncertainty, strategies that prioritize risk management over aggressive return targets tend to gain favor.
Derivatives markets also play an important role. Rising funding rates, elevated implied volatility, and changes in options skew can provide clues about sentiment and potential turning points. When excessive leverage builds up, even a modest price move can trigger a cascade of liquidations, reinforcing the importance of monitoring futures and options data.
Risk management in a falling market
For both newcomers and experienced participants, robust risk management is crucial during sell-offs. Diversification across different assets, limiting exposure to highly speculative tokens, and avoiding over-leveraged positions can help mitigate downside risk.
Setting clear time horizons and investment theses is equally important. Short-term traders may choose to step aside during periods of extreme volatility, while long-term investors might focus on whether the fundamental narratives driving adoption — such as institutional interest, regulatory clarity, or technological improvements — remain intact.
This environment also underscores the danger of chasing parabolic moves late in a rally. Many of the current losses are being felt by buyers who entered at or near recent highs, attracted by rapid gains without fully considering the risk of sharp reversals.
What to watch next for BTC, ETH, SOL, XRP and DOGE
Over the coming days and weeks, several factors are likely to determine whether the current slump deepens or stabilizes:
– How quickly rate-cut expectations shift in response to new economic data
– Whether outflows from Bitcoin and Ethereum spot ETFs accelerate or plateau
– The resilience of key support zones, particularly around $85,000 for BTC and $2,800 for ETH
– Leverage levels in derivatives markets and signs of forced liquidations
– Investor behavior in altcoins like SOL, XRP, and DOGE — whether they face continued de-risking or see selective bargain hunting
If macro conditions remain merely uncertain rather than outright negative, a stabilization phase with choppy sideways trading is plausible. If, however, data or central bank messaging clearly tilts toward a more prolonged period of tight financial conditions, deeper pullbacks across the crypto complex cannot be ruled out.
Beyond the crash: the bigger picture for digital assets
Despite the current turbulence, many industry participants still view digital assets as part of a long-term structural shift in finance and technology. The development of on-chain infrastructure, the growth of tokenization, and ongoing improvements in scalability and user experience continue, largely independent of short-term price moves.
For now, though, markets are dominated by macro uncertainty and risk re-pricing. BTC, ETH, SOL, XRP, and DOGE are all caught in this cross-current, sliding as traders reassess how much risk they are willing to hold in a world where rate cuts are no longer taken for granted. The coming months will show whether this is a temporary shakeout or the beginning of a more prolonged consolidation phase for crypto.