Bitcoin Plummets Below $90,000 Amid Rising Energy Demand

Bitcoin fell below $90,000 on November 6, 2023, for the first time since April, reaching an intraday low of $89,426 before closing at approximately $91,200. This decline marks a significant drop of over 20% from the cryptocurrency’s peak in October, when it surpassed $126,000. The recent downturn has effectively erased all gains made by Bitcoin in 2025, raising concerns among investors.

Several factors have contributed to this sell-off. Notably, there have been outflows amounting to $2.3 billion from U.S. spot Bitcoin exchange-traded funds (ETFs) in the first half of November. Additionally, rising Treasury yields have exerted further pressure on the market.

Supply-Side Pressures from Miners

Beyond market conditions, a critical supply-side factor has emerged from Bitcoin miners themselves. As energy demand has soared, the costs associated with mining Bitcoin have increased significantly. Miners are facing escalating operational expenses, which has led to a reduction in their activity. This has created a ripple effect, contributing to the overall decline in Bitcoin’s price.

The current landscape highlights a complex interaction between demand for energy, operational costs for miners, and the broader market dynamics influencing cryptocurrency prices. The combination of these elements has resulted in heightened volatility, making it challenging for investors to navigate the current environment.

As the situation develops, market participants will be closely monitoring both external and internal pressures affecting Bitcoin. Understanding these dynamics is crucial for assessing the future trajectory of this leading cryptocurrency.