Bitcoin Price Correction: A Deep Dive into Market Dynamics

Sharp Decline to 7-Month Low

The Bitcoin (BTC) price experienced a significant correction, dropping to US$89,000 on Tuesday (18/11/2025), marking its lowest level in seven months. This sharp decline was attributed to a combination of technical selling pressure and substantial outflows from US Bitcoin ETFs, which saw their holdings decrease from 441,000 BTC to approximately 271,000 BTC over four consecutive days. The situation was further aggravated by a massive redemption of over US$800 million in a single day.

Global Market Sentiment and Macroeconomic Factors

The cryptocurrency market sentiment was negatively impacted by the proposal of potential 500% tariffs by US President Donald Trump on countries still trading with Russia. This move triggered widespread concerns in global markets, particularly affecting risk assets like cryptocurrencies. The Fear & Greed Index plummeted into the "extreme fear" zone as major altcoins also experienced significant corrections.

Market Outlook and Expert Analysis

Despite the current downturn, industry experts remain optimistic about the long-term prospects of Bitcoin. Antony Kusuma, Vice President of INDODAX, stated that the price movement was primarily influenced by short-term technical factors and global sentiment rather than fundamental changes in the digital asset. He emphasized that the current correction is part of the natural market cycle and presents an opportunity for long-term investors to accumulate positions gradually.

Regulatory Landscape and Market Liquidity

The market also reacted to shifting regulatory priorities in the US, with the SEC announcing a shift in focus from cryptocurrency oversight to other areas such as fiduciary duties, cybersecurity, and technological risks. While this might suggest a reduced emphasis on crypto regulation, the SEC clarified that digital assets could still be subject to scrutiny if deemed high-risk. Additionally, expectations of improved liquidity in the US financial system following the Fed's plans to halt its balance sheet reduction and potentially implement repo operations provided some support to Bitcoin's price towards the end of the reporting period.

Conclusion

The recent Bitcoin price correction, while alarming for some investors, is viewed by industry insiders as a temporary market adjustment rather than the beginning of a new bearish trend. The strong fundamentals of the digital asset, coupled with the inherent volatility of cryptocurrency markets, suggest that the current dip may present buying opportunities for long-term investors. As always, investors are advised to maintain prudent risk management strategies amid the heightened market volatility.