Bitcoin Faces Its Worst Month Since the 2022 Crypto Collapse

Bitcoin is plunging sharply in November 2025, marking its worst monthly performance since the dramatic crash of mid-2022. This downward move is raising red flags across the crypto world and among macro investors.

A Sharp Drop in Price

Bitcoin recently fell below $90,000, dropping to approximately $89,500 before rebounding to around $93,600, according to AP News. That represents a steep decline from its peak of over $126,000 in early October.
Overall, Bitcoin has lost more than 20 per cent in November, a downturn not seen since June 2022.

What Is Driving the Sell-Off?

Several factors appear to be fueling this drop. First, whales, or very large Bitcoin holders, have been offloading large volumes. Around 400,000 BTC, worth roughly $45 billion, were sold in the past month.

This steady exit is coming from the spot market, rather than from forced liquidations in futures trades, which suggests a deliberate withdrawal by long-term holders.

Second, rising macro risk is putting additional pressure on crypto. Global markets are reacting to uncertainty around interest-rate policy, geopolitical tensions, and a more cautious investor mood.

Third, there is liquidation activity in the crypto market. One report noted a sharp drop triggered by a sizable liquidation event, contributing to a rapid unwind of leveraged positions.

Finally, a widely watched crypto risk gauge, the Fear & Greed Index, has plummeted, signaling extreme fear among investors, levels not seen since the 2022 bear market.

Historical Echoes: The 2022 Crypto Collapse

The current slump draws uncomfortable parallels to the major crypto meltdown in June 2022, when Bitcoin fell more than 40 per cent from its highs.

That crisis was triggered by the collapse of TerraUSD, fallout from the FTX collapse, and broad liquidity stress across crypto markets.

While the causes differ, the magnitude and speed of the current decline are reminiscent of that period, raising questions about whether another prolonged downturn could follow.

Broader Impact and Market Response

The current sell-off is not just hurting Bitcoin. Other major crypto assets are feeling the heat too. For example, Ether has also declined significantly amid the risk-off sentiment.

Even tech-related factors are spilling into crypto: geopolitical tensions, such as trade concerns between major economies, and investor anxiety over monetary policy are creating ripple effects.

Some analysts suggest that after this wave of liquidations and uncertainty, Bitcoin could settle into a more stable base if long-term investors step back in.

On the other hand, if institutional inflows weaken further, the crypto market may struggle to find a clear bottom soon.

Looking Forward

At this juncture, Bitcoin’s direction seems to hinge on a few key developments. Continued whale selling could further pressure the price. More liquidation events may deepen the drop. At the same time, a shift in investor sentiment, either through fresh institutional buying or renewed risk appetite, could help stabilize the market.

Investors will be watching macroeconomic policy closely, especially cues around interest rates, liquidity, and geopolitical developments. If confidence can return, this decline could serve as a reset. If fear persists, this could turn into a more extended correction.

Bitcoin’s sharp slide this month is a clear reminder of how fragile market gains can be in the crypto world. Whether this marks a temporary drop or the start of a deeper retrenchment remains to be seen, but for now, the echoes of 2022’s crypto collapse are difficult to ignore.