Bitcoin Sees Major Drop
On Friday, Bitcoin fell to a seven-month low, losing more than 20% of its value in a harsh November selloff that brought its price down to around $80,000.
This sudden decrease means Bitcoin is now about 30% lower than its peak of over $120,000 in October, effectively erasing all gains made in 2025 due to a wave of liquidations and a drop in risk-taking among investors.
At one point, Bitcoin dipped to approximately $80,600 before regaining some ground, fluctuating between $82,900 and $86,000 according to various data sources.
Since October, the cryptocurrency market has seen more than $1 trillion in losses, with over $21 billion in leveraged liquidations occurring during significant market drops. This situation has fundamentally altered trading dynamics, as many participants noted.
As Bitcoin dipped below $81,000, traders reported possible pricing errors on multiple platforms.
The crypto market has faced ongoing challenges since October 10, when around $19 billion in long leveraged positions were liquidated in a single day—marking the largest such event in the market’s history.
Traders and analysts commented that the market hasn’t stabilized since that upheaval; liquidity has diminished, ETF investments have turned negative, and volatility has increased significantly.
Armando Aguilar, head of capital formation at TeraHash, reflected on the current state of Bitcoin, suggesting it’s a direct consequence of the massive sell-off seen in October. “This seems like a cold case. I feel the market is very volatile,” he added.
Furthermore, selling pressure increased after a major Bitcoin whale sold off $1.3 billion in late October and liquidated the rest of its holdings this week, raising concerns about the presence of forced sellers in the market.
“Overall sentiment is incredibly bad. There appears to be some forced selling in the market, but it’s unclear how deep this is,” said Pratik Kala, a portfolio manager at Apollo Crypto.
Institutional trends have also contributed to this decline, with significant outflows from spot Bitcoin ETFs throughout the week, including record withdrawals from BlackRock’s IBIT. Additionally, Bitcoin funds listed in Hong Kong fell nearly 7%.
Analysts indicated that this movement reflects a growing risk aversion rather than a fundamental rejection of crypto products, though the poorly timed sales have resulted in reduced liquidity.
