On the night of November 17–18, 2025, the cryptocurrency market experienced a major downturn. Bitcoin briefly fell below $90,000, while Ethereum dropped under $3,000, with daily liquidations surpassing $1 billion.
The Fear & Greed Index plunged into the “Extreme Fear” zone, reflecting broad market weakness across digital assets. Analysts attribute the correction not to fundamental flaws in cryptocurrencies but to a mix of liquidity pressures, institutional outflows, and market mechanics.
Key factors behind the decline:
- Macroeconomic headwinds: Expectations of a December Federal Reserve rate cut dropped to roughly 50%, increasing demand for U.S. Treasuries and gold, drawing capital away from high-risk digital assets.
- Bitcoin ETF outflows: Negative net capital flows over three weeks pushed BTC below the $89,600 average entry point, temporarily putting many investors in the red.
- Psychological barrier breached: Analysts at CryptoQuant note the break below $90,000 as a key signal of market fragility, with potential for further corrections to $87,500 or even below $80,000.
Ethereum also saw significant declines, with weekly losses exceeding 14% and monthly drops over 21%, according to TradingView data. The total cryptocurrency market capitalization fell by over $1 trillion within 40 days.
Experts from Kobeissi Letter and CryptoQuant highlight that leveraged liquidations and institutional withdrawals amplified volatility. The initial wave of decline traced back to $19 billion in liquidations on October 10, 2025, triggered by extensive margin trading.
Community and expert insights:
- Matt Hougan (CIO, Bitwise Investments): Calls the dip a “once-in-a-generation opportunity” for long-term investors.
- Tom Lee (Fundstrat): Observes signs of market exhaustion and predicts a local bottom may form soon.
- Michael Saylor (Strategy, Bitcoin maximalist): Advocates continuing regular BTC purchases despite volatility.
- Cameron Winklevoss (Gemini): Considers the sub-$90K level a last chance to accumulate before the next market phase.
- Igor Stadnik (True Trading AI): Attributes the correction to liquidity reductions, U.S. government shutdowns, and monetary policy shifts, noting selective growth is possible among strong networks like Ethereum, Solana, and BNB.
Meanwhile, Solana continues to demonstrate network resilience, with stable operational performance despite short-term price dips.
In summary, the recent crypto market decline is seen as a structural correction, influenced by high liquidation volumes, reduced institutional inflows, and macroeconomic uncertainty. Many investors interpret the pullback as a potential long-term entry point, while caution remains essential amid ongoing volatility.
