- Bitcoin has dropped over 30% from its October peak, prompting questions about a possible bear market.
- November may be the weakest month for bitcoin since 2022, with the crypto market cap falling below $3 trillion.
- U.S. spot bitcoin ETFs saw $903 million in net outflows on Thursday, their largest since February 2023.
- Demand for bitcoin is cooling, with ETF accumulation slowing and major crypto treasury buyers reducing purchases.
- Despite the drop, bitcoin remains more than 20% higher than last November and is increasingly integrated into mainstream portfolios and regulated environments.
The price of bitcoin has fallen by more than 30% from its October all-time high, raising concerns about whether the market has entered a bear phase. This recent decline has caused bitcoin to dip to its lowest levels since its big collapse in 2022, with November tracking as one of its weakest months. The overall cryptocurrency market capitalization has also fallen below $3 trillion for the first time since spring.
On Friday, the market experienced a notable sell-off, wiping out nearly $2 billion in leveraged bets as bitcoin briefly reached about $82,000. In line with this downturn, U.S. spot bitcoin ETFs recorded $903 million in net withdrawals on Thursday, marking their second-largest outflow since inception and the biggest since the tariff-driven selloff in February. Analysts attribute the selloff to long-term holders taking profits amid reduced market risk appetite due to uncertain U.S. Federal Reserve policies.
Additional data shows a decline in demand for bitcoin as CryptoQuant researchers indicated that most of the current cycle’s demand wave may have passed. ETF accumulation has slowed to near historic lows since these products began trading. Additionally, crypto treasury holders, who were significant buyers in 2025, have reduced their bitcoin acquisitions as their own market values dropped from roughly $176 billion to about $99 billion. Even Strategy, one of the most reliable buyers, has decreased its purchases due to diminishing stock premiums relative to net asset value.
These developments follow a mass liquidation event on October 10, which exposed vulnerabilities in the crypto market’s ability to handle large institutional sell-offs. Analysts from Galaxy, including Alex Thorn and Beimnet Abebe, have noted the presence of reflexivity, where falling prices lead to increased selling, further driving prices down. Without a clear positive catalyst, they suggest the market’s downward trend may continue for now.
Despite the recent declines, bitcoin’s price remains over 20% higher than it was in November of the previous year. The cryptocurrency is gaining mainstream acceptance, with top banks and institutional investors recognizing it as a legitimate asset. Financial advisors are moving from cautious experimentation to incorporating bitcoin as a strategic part of client portfolios. Regulatory conditions have improved, and the launch of new crypto ETFs is increasing market accessibility. These factors suggest that the current phase may be a significant correction rather than a collapse.
For further details, watch the discussion by Alex Thorn and Beimnet Abebe here.
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