Bitcoin is on track for its worst monthly performance since the 2022 crypto market collapse, dropping as much as 6.4% on Friday to $81,629, Bloomberg reports. Ethereum and a host of smaller cryptocurrencies also fell sharply, with Ether losing as much as 7.6% to below $2,700. Data from CoinGecko show the total market value of all virtual coins fell below $3 trillion for the first time since April.
The declines mark a roughly 25% loss for Bitcoin in November alone, the steepest monthly drop since June 2022, following a series of corporate collapses that began with the TerraUSD stablecoin debacle and culminated in the FTX exchange bankruptcy. Despite earlier surges driven by institutional adoption and bullish sentiment, Bitcoin has now fallen over 30% since reaching a record in early October, fueled in part by $19 billion in leveraged token liquidations on October 10 that wiped out $1.5 trillion from the broader cryptocurrency market.
Selling pressure intensified over the past 24 hours, with an additional $2 billion in leveraged positions liquidated, according to CoinGlass. Bloomberg notes that the market is facing broader headwinds as US stocks gave up gains after a late-week retreat sparked by concerns over valuations and a potential Federal Reserve rate decision in December.
Investor sentiment has reached extreme levels of fear, mirroring conditions last seen during the 2022 meltdown. A crypto investor sentiment index compiled by Coinglass, which measures volatility, momentum, and demand, has hit its lowest level since the previous rout. Meanwhile, institutional investors appear cautious, with 12 US-listed Bitcoin exchange-traded funds posting $903 million in net outflows on Thursday, marking their second-largest single-day redemption since debuting in January 2024.
Prominent holders of Bitcoin, including long-term hoarder wallets and firms replicating Michael Saylor’s accumulation strategy, have been selling into the weakness, further intensifying the market downturn. Analysts at JPMorgan Chase & Co. have warned that firms like Strategy Inc. risk losing inclusion in major indices if their holdings continue to decline, highlighting the interconnected risks between crypto markets and traditional finance.
As Bitcoin struggles to regain stability, Bloomberg reports that traders and institutions are bracing for continued volatility, testing both market resilience and investor confidence amid one of the most turbulent months in recent crypto history.
