Bitcoin’s price has taken a sharp plunge, dropping below $87,000 on November 20, 2025, driven by quantum computing concerns and a significant whale sell-off. This market movement resulted in $220 million worth of long positions being liquidated, further fueling volatility in the cryptocurrency market.
What Triggered Bitcoin’s Drop?
The downturn comes after billionaire Ray Dalio expressed apprehension about Bitcoin’s vulnerability to advancements in quantum computing. Dalio commented, “The problem with Bitcoin is that it’s not going to be a reserve currency for major countries because it can be tracked, controlled, or even hacked.”
However, not all experts agree with Dalio. Financial analyst Mel Mattison countered, stating that concerns about Bitcoin’s cryptographic security are overblown. “If quantum decryption scares people into selling BTC, they should also worry about the security of traditional banks. Bitcoin’s SHA-256 encryption is stronger than the RSA encryption used by most financial institutions,” said Mattison.
Massive Whale Exit Adds Fuel to the Fire
Amid this controversy, a major Bitcoin whale named Owen Gunden—who has held Bitcoin since 2011—liquidated his entire holdings of 11,000 BTC, worth $1.3 billion. Blockchain analytics firm Arkham confirmed the move, marking Gunden’s exit as one of the largest sell-offs in recent history.
This whale movement had a ripple effect, creating an oversupply in the market. Coupled with rising concerns over quantum computing, the sell-off triggered mass liquidations, with over $910 million in crypto positions wiped out within 24 hours, according to CoinGlass data.
Leverage Amplifies Market Volatility
Much of this volatility was exacerbated by the high leverage in cryptocurrency markets. As Bitcoin slid from over $91,000 to $86,000 in just 48 hours, leveraged traders faced rapid margin calls, resulting in a wave of forced liquidations. During one of the most volatile hours, long liquidations surged to $264.79 million, while shorts reached $256.44 million.
Institutional Buyers See Opportunity
Despite the sell-off, Bitcoin ETFs (exchange-traded funds) reflected $75 million in net inflows on November 20, marking the end of a five-day streak of negative flows. BlackRock’s IBIT fund and Grayscale’s Bitcoin ETF led the inflows, signaling interest from some institutional investors who see the dip as an entry point.
However, not all ETF issuers shared the same optimism. Firms like VanEck and Fidelity reported flat or negative flows, pointing to continued caution within institutional circles as the market processes heightened risk factors.
What’s Next for Bitcoin?
The confluence of whale exit strategies, quantum security fears, and institutional buying opportunities has created a perfect storm of market volatility. Whether Bitcoin will stabilize or continue its downward trend remains to be seen, as investor sentiment hangs in the balance.
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