Bitcoin has experienced a significant downturn, hitting its lowest point in seven months amidst a sharp November selloff that has diminished its value by over 20%. This decline has brought the world’s leading cryptocurrency down to the approximately $80,000 range, marking a troubling shift for investors and market participants alike.
The dramatic price drop has pushed Bitcoin nearly 30% below its record high of over $120,000 set in October, effectively erasing all gains accumulated for 2025. The cryptocurrency saw a brief low of around $80,600 before recovering slightly, trading instead between $82,900 and $86,000, as reported by various data providers.
The current market turmoil has obliterated more than $1 trillion in total cryptocurrency market value since mid-October. This downturn has also triggered more than $21 billion in forced liquidations in a series of two major market events, which experts say have severely disrupted trading conditions.
Traders suspected a pricing glitch on several trading platforms contributed to the sudden drop below $81,000, raising concerns about the stability of these markets during such volatile times. Crypto markets have not recovered since the catastrophic liquidation event on October 10, which saw approximately $19 billion in long, leveraged positions wiped out in a single day—the largest in the market’s history.
Following this event, liquidity across the market diminished sharply, and more investors faced increasing volatility as ETF flows turned negative. Analysts have indicated that the market atmosphere remains fragile and unsettled after these disturbances, with a lack of structured recovery mechanisms.
Armando Aguilar, head of capital formation at TeraHash, stated that the current situation with Bitcoin is a direct outcome of the massive sell-off in October. He described the market as “very unstable,” suggesting that the challenges have yet to be fully resolved.
The situation was further exacerbated by the actions of a major Bitcoin whale, who offloaded $1.3 billion worth of assets in late October and ended up liquidating all remaining holdings within the past week. This event raised additional alarm among traders regarding persistent selling pressure and the potential for more forced sellers to emerge.
Apollo Crypto portfolio manager Pratik Kala noted that general sentiment in the market is exceedingly bleak, with indications that a forced seller is actively contributing to the ongoing downturn. He expressed uncertainty regarding how deep these issues might run.
Additionally, the decline has been underscored by adverse institutional flows. Various spot Bitcoin exchange-traded funds (ETFs) have seen substantial outflows, including record withdrawals from BlackRock’s IBIT. Meanwhile, Bitcoin funds listed in Hong Kong also recorded a nearly 7% drop, suggesting a wider trend of risk aversion rather than a fundamental rejection of cryptocurrency products.
Analysts assert that these selling activities have drained liquidity at a critical juncture, prompting concerns about the future performance of Bitcoin and the overall health of the cryptocurrency market.
