Bitcoin price slides as investors shun risk
By Abigail Townsend
Date: Friday 21 Nov 2025
(Sharecast News) - Bitcoin fell sharply on Friday, as investors pulled back from high-risk assets amid ongoing fears about a possible AI bubble and sky-high valuations.
As at 1300 GMT, the cryptocurrency had shed 4% to $83,164, and is now down 11% over the last week.
Rival cryptocurrencies were also lower, including Ethereum, off 4% at $2,725.
Tech stocks have boomed this year, on the back of surging demand for artificial intelligence. That has helped global equity markets reach record highs despite weak macroeconomic conditions.
Nvidia's blockbuster third-quarter numbers on Wednesday temporarily looked to dispel fears that a bubble may be forming.
But markets have since cooled, as concerns about the sustainability of such sky-high valuations continue to pick up pace.
A year ago, Bitcoin breached $120,000, buoyed by strong demand and favourable regulatory changes.
However, it then pulled back, falling to a low of $77,000 by April, and analysts believe it could now be heading back towards that level.
Dan Coatsworth, head of markets at AJ Bell, said: "There is a clear shift in risk appetite today, with tech stocks weaker and defensive style companies...in vogue as people seek to hide in traditionally safer parts of the market.
"When markets remain on a knife edge, it's inevitable that some people will want to protect any profits by trimming positions.
"Bitcoin, which sits at the top end of the risk spectrum, extended a losing streak that's been in motion since last October. If people have lost confidence in tech stocks, they certainly won't have the confidence to speculate on cryptocurrency."
Patrick Munnelly, partner, market strategy, at Tickmill Group, said: "The cryptocurrency benchmark has dropped 21% in November, bringing its total losses over the last three months to 23%.
"Market participants [are] suggesting that the crypto has been acting like the canary in the coal mine in the latest round of de-risking in most major asset classes."
However, Ipek Ozkardeskaya, senior analyst at Swissquote, noted: "To be fair, there's nothing to stop the fall given that we have no idea what the coin is worth - other than the value we collectively give it."
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