Bitcoin, the world’s most actively traded cryptocurrency, has endured a punishing November, posting its steepest monthly decline in more than three years and sinking to a seven-month low. Market sentiment has turned sharply bearish, weighed down by forced liquidations and a broad risk-off mood across speculative assets.
The digital asset has slumped more than 21 percent this month, its worst fall since the June 2022 crypto crash. Bitcoin, which traded near $126,000 in early October, tumbled below $81,000 by late November — a dramatic 33 percent erosion in slightly over a month. Major altcoins mirrored the downturn, deepening the rout across the broader crypto market.
"I am seeing reduced retail demand for bitcoin which normally comes via an ETF and we are also seeing some very large Bitcoin holders also known as whales offloading their positions. These whales have been holding Bitcoin for more than 10 years so it should be worrisome signs for anybody investing in bitcoin. I don’t have a long term view on bitcoin but I believe in the short term, Bitcoin is oversold and it should stabilize here at least till next FOMC meeting", said Ritesh Jain Founder - Pinetree Macro.
The selloff was compounded by one of the most severe months on record for crypto exchange-traded funds. Bitcoin ETFs saw heavy redemptions, with BlackRock’s flagship iShares Bitcoin Trust (IBIT) absorbing the bulk of the damage. IBIT recorded close to $3 billion in net withdrawals in November alone, including a record single-day redemption of $523 million. Monthly outflows of around $2.1 billion from IBIT accounted for roughly 71 percent of all Bitcoin ETF redemptions across the domestic market. Altogether, spot Bitcoin ETFs shed nearly $3 billion, while Ether ETFs faced withdrawals of about $1.79 billion. In contrast, a few niche funds such as those tracking Solana managed to attract inflows.
Anil Kumar Bhansali, Head of Treasury at Finrex Treasury Advisors LLP, said the outflows coincided with Bitcoin’s slide below key technical levels, a deteriorating macroeconomic outlook amid fading hopes of near-term Federal Reserve rate cuts, and a rise in institutional short-selling. “The pressure on ETFs, particularly IBIT, reflects heightened investor caution and a sharply reduced appetite for crypto risk in November 2025,” he said.
Experts said the turmoil can be traced back to a massive liquidation wave on October 10 that wiped out almost $19 billion in leveraged bets. The chain reaction triggered heavy forced selling well into November, erasing an estimated $1.5 trillion in total crypto-market capitalization. A major Bitcoin whale accelerated the decline by offloading about $1.3 billion worth of holdings in late October and selling further positions in early November.
Investor sentiment suffered additional blows from weak macroeconomic data, including disappointing jobs numbers and diminishing expectations of Federal Reserve rate cuts. Volatility in the AI and tech sectors spilled over into crypto, while thinning liquidity ahead of the holiday season amplified price swings. Options expiry further destabilized markets, pushing sentiment into “extreme fear” territory as ETF outflows widened and institutional participation dried up, experts added.
Despite strong gains of 122 percent in 2024 and 153 percent in 2023, Bitcoin is down more than 5 percent so far this year. Volatility escalated in early 2025 following President Trump’s inauguration and the introduction of his crypto framework, including a proposed strategic Bitcoin reserve funded by seized assets.
Regulatory uncertainty also weighed heavily. The much-anticipated Clarity Act — intended to define crypto assets and assign regulatory oversight — along with a bill aimed at preventing the Federal Reserve from creating a central bank digital currency, stalled in Congress after resistance from both parties. With revisions pushing the legislation into 2026, the delay has frustrated an industry that played a pivotal role in campaign financing. The CBDC Anti-Surveillance State Act has likewise seen no movement in the Senate, further darkening sentiment.
Still, some analysts urged investors to view the correction within the context of Bitcoin’s inherent volatility rather than as a structural breakdown. Late last week, a glimmer of optimism appeared: Bitcoin ETFs saw $238 million in fresh inflows, while Ethereum ETFs added $55.7 million, breaking an eight-day streak of redemptions. Trading volumes on major platforms climbed 27 percent week-on-week as investors bought the dip and averaged their positions.
Ashish Singhal, Co-founder of CoinSwitch, said market pullbacks present valuable opportunities. “Timing the market is incredibly difficult. Historically, staying invested has delivered better outcomes. Corrections like these help investors strengthen portfolios, refine asset allocation, and align investments with long-term goals rather than reacting emotionally to short-term fluctuations,” he said.
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