Cryptocurrency markets have entered a steep downturn. In November 2025 alone, over $1 trillion of market value was wiped out, as Bitcoin fell from an October peak above $126,000 to the mid-$80,000s. This latest crypto crashing wiped out nearly all of this year’s gains: Bitcoin is down about 26–30% from its high. Many other coins plunged as well, deepening the bear market. In short, the crypto market is crashing, spurring questions about why it’s happening, how low prices may go, and if – or when – a rebound might occur.
Analysts point to a mix of macro and market factors driving this crash. A broad risk-off shift in financial markets – from faster Fed rate cuts to rising inflation fears and global trade frictions – has sapped demand for volatile assets. As one expert noted, doubts about U.S. rate cuts and “risk-averse mood in broader markets” have been dragging down crypto. At the same time, excessive leverage and profit-taking fueled by recent rallies have added sell pressure. Banks of sell orders hit all-time highs: U.S. spot Bitcoin ETFs have seen record outflows (about $3.5 billion withdrawn in November), and long-term holders liquidated roughly 800,000 BTC in November. All these forces combined to create a perfect storm in which crypto prices sank rapidly.
In plain terms, crypto is crashing now because both retail and institutional investors are pulling back. New bullish narratives (such as pro-crypto political policies or an “AI bubble” rally) faded, and many traders locked in gains. Meanwhile, technical factors tripped stops – for example, Bitcoin slid below key support at $100,000 and even $90,000, triggering automated selling. Major crypto stocks and funds (from Coinbase to MicroStrategy) have fallen with the market as well. The result is a sweeping downturn: Bitcoin’s value is “down nearly 30% from its peak,” and roughly $1.2–1.3 trillion has vanished from the entire crypto market since early October.
In everyday terms for beginners: imagine a roller coaster ride that suddenly went down very steeply. Many people who bought crypto at higher prices are seeing big losses this month. Headlines are using alarmist language (“Bitcoin crashes,” “crypto meltdown”), and social media is full of fear. But remember: past crypto crashes (2018, 2021–22, etc.) were similarly extreme before markets eventually recovered. Still, right now the market is crashing, and understanding why – and how to respond – is key for any investor.
What Is Happening to the Crypto Market Right Now?
The current crypto crash can be characterized by sharp losses across the board. Bitcoin has fallen from ~$126,000 in early October to under $90,000 in mid-November. That is about a 30% drop in a matter of weeks – fast and furious. Ethereum and most major altcoins have followed suit, many down 20–40% from recent highs. One analyst noted that this November decline is “the largest dollar-for-dollar selloff in the history of crypto.” (By comparison, the large drop in early 2022 was about 70–80% from peak, but it unfolded over a year.)
On an index level, the total crypto market cap fell by well over $1 trillion in a few weeks. CoinGecko data confirms roughly $1.2–1.3 trillion wiped out by mid-November. Sentiment has flipped from euphoria to panic: the popular Fear & Greed Index hit its lowest reading of the year (deep “Extreme Fear”). Leverage is being flushed: over $40 billion in crypto positions were liquidated since Oct. 10. Futures open interest collapsed from over $320 billion to about $123 billion in a few weeks, reflecting massive unwinding of bets.
In practical terms, even everyday investors are feeling it. Many exchanges saw record volumes of bitcoin for sale as individuals rush to exit or avoid losses. Large traders (or “whales”) and crypto-focused funds have publicly noted that the market now has no clear buyer support. One reporter bluntly observed: “We know what’s not driving a rally in crypto right now – there’s been a spate of liquidation events and no sign of whales buying in.” In short, the crypto market right now is in correction mode, resembling earlier crypto “washouts” where prices dropped 20–80% from the highs before eventually stabilizing.
Key facts about the crash:
• Bitcoin’s decline: From a $126k all-time high on Oct 6, BTC dropped ~30%, trading around $88–93k by late Nov. This erased months of gains; Bitcoin briefly tested the $80–84k zone before bouncing somewhat.
• Total market fall: All major crypto coins lost value. The total cap fell to around $2.9 trillion (from over $4.3T pre-crash). That’s the worst monthly drop since mid-2022.
• Crypto stock impact: Public companies linked to crypto (miners, ETFs, etc.) also slid. Even blockchain stocks and altcoins dropped, though many fell less than Bitcoin (altcoin dominance actually steadied a bit).
• ETF flows: U.S. Bitcoin ETFs have seen record outflows – about $3.5 billion pulled in November. This overwhelming selling pressure contrasts with the inflows that had lifted prices in 2024. For example, BlackRock’s Bitcoin ETF (IBIT) saw $2.2B of redemptions in November. In fact, research finds U.S. investors accounted for 97% of the recent crypto investment outflows, highlighting how U.S. markets are leading the decline.
• Investor mood: Fear is rampant. Retail chatter and social polls show many questioning if the “crypto bull run” is over or just taking a pause. One Philippine crypto site notes, “Bitcoin has fallen more than 26% from its October record, dropping below $92,000” and asks whether the decline is a temporary correction or the start of something deeper.
Overall, the crypto market is highly volatile and currently in a sharp downturn. Traders who bought near the top are nursing losses, and newcomers are scrambling to understand why the market is crashing. While the speed of this decline can feel unprecedented, history shows that crypto markets swing dramatically. It’s wise for beginners to remember that tops and bottoms can only be identified in hindsight, meaning you never truly know the exact bottom until after it happens. This makes the current crash a very uncomfortable time, but not necessarily the end of crypto.
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Why Is Crypto Crashing? Key Causes
The question on everyone’s mind is why is the crypto market crashing now? In reality, multiple factors are at work. We can group the main causes as follows:
• Macro Risk-Off: In November 2025, traditional markets soured on risk. Tech stocks and other high-fliers stumbled amid talk of an “AI bubble” popping and worries about inflation. When the broader economy seems unstable, investors flee to safer assets like cash and bonds, leaving volatile ones like crypto behind. As one report notes, “the ongoing crypto market volatility” has coincided with “volatility in financial markets due to fears of inflation spikes, slower-than-expected rate cuts or a possible recession”. In short, crypto often behaves like a “risk asset” – when stocks and tech get dumped, crypto gets dumped too.
• Fed and Monetary Policy: The Federal Reserve is the dominant force in U.S. and global finance. At first, 2025’s crypto rally was fueled by hopes of pro-crypto policies and easy money. But by year-end, the Fed’s message became mixed. Some officials hinted rate cuts might be delayed, which raised real interest rates. Higher rates generally make speculative assets less attractive. Analysts noted the uncertainty: “Investors worry that [tariff-driven] inflation [might] push the Fed to delay cutting interest rates. Higher rates make risky assets like bitcoin less appealing”. In other words, if cash yields more, fewer people chase crypto.
• Profit-Taking: A lot of long-term crypto investors booked profits. After Bitcoin’s huge rally (over $126k), many holders sold into strength. Indeed, one article reports 800,000 BTC sold in November – the largest single sell-off since early 2024. These hefty sells by whales and big funds put downward pressure on price. Think of it like a crowded theater: once a lot of people decide to leave at the same time (sell), the price drops rapidly.
• Leverage and Liquidations: In the crypto bull run, traders piled on leverage (borrowed money) to bet on rising prices. When prices fell, many leveraged positions were liquidated automatically, which further magnified the crash. Over $19 billion of leveraged positions were liquidated in mid-October alone, adding fuel to the sell-off. High leverage has a flip side: it accelerates crashes when the wind blows the other way.
• ETF and Institutional Flows: Bitcoin ETFs (especially in the U.S. and Canada) have played a big role. After massive inflows all year, November saw record outflows of $3.5+ billion from U.S. Bitcoin ETFs. When institutional money stops buying and starts selling, prices fall. For example, BlackRock’s ETF, with over 60% market share, saw $2.2B redeemed in November. These flows matter: one analysis notes ETFs “keep Bitcoin climbing” in rallies, but have now flipped to selling.
• Market Psychology and Hype Cycle: Crypto booms tend to be driven by hype and fear. This year’s crash exposed how quickly sentiment can flip. Some of the optimism was tied to external narratives (e.g. an assumed Trump crypto-friendly presidency, or news hype around AI/blockchain). As those narratives faded or became uncertain, sentiment “eroded with remarkable speed”. In other words, every new catalyst seems to be countered by a new fear, making crypto a highly emotional game.
In summary, there is no single villain. Rather, a confluence of factors – macroeconomic tightening, massive profit-taking, record leveraged bets unwinding, and waning hype – all collided. This is why “the crypto market is crashing” across the board.
A concrete example: The recent Fed context is critical. In October 2025, Bitcoin surged on hopes of a December rate cut. By November, Fed officials suggested cuts might be delayed. Investors reacted by rebalancing away from crypto. ZebPay’s COO notes that “short-term caution is visible, but none of this points to a structural breakdown in Bitcoin’s long-term trend.”. This highlights a key point – many experts view the current decline as a normal profit-taking correction after a strong rally, not the death knell of crypto.
As a beginner, think of this like stocks: even in a bull market, it’s normal to see 5–10% pullbacks regularly. Crypto pullbacks are often much larger (20–50% or more), but they are part of the cycle. The current crypto crash feels worse because of the huge rally just before it, and because leveraged bets amplified the fall. But it also means that, historically, such deep corrections can set the stage for the next run-up – if and when conditions improve.
Will the Crypto Rebound Really Come in the Near Future?
A big question on everyone’s mind is whether the market will bounce back soon, and whether “crypto rebound will really come in the near future.” Views diverge among experts. Some signal that a turnaround could be imminent; others warn the sell-off may have farther to go.
Signs pointing to a rebound: Technical and sentiment indicators suggest the market is oversold. For example, on Nov. 23rd Bitcoin’s Relative Strength Index (RSI) hit an “extreme oversold” level – meaning it may have fallen too fast too far, too quickly. In past cycles, such oversold readings were followed by short-term rebounds: CoinDesk notes that previous dips into this RSI zone (in 2023 and early 2025) led to quick recoveries. Indeed, on the weekend of Nov. 22–23, Bitcoin and many altcoins did bounce: BTC jumped ~2.7% after hitting oversold territory, and total crypto market cap climbed ~3.3% in a day. This suggests seller exhaustion – many traders had already sold out, so prices found a floor.
Other factors could spur a rebound soon. Liquidity may return if central banks pivot. The market is braced for a possible Fed cut by year-end; if that happens, the resulting risk-on tide could lift crypto prices. Analysts have noted that “growing optimism around a possible December rate cut has eased some macro pressure and sparked tactical buying.”. Additionally, some technical indicators are at historical bottom levels – on weekly charts, Bitcoin’s RSI is similar to the 2020 crash lows. Similarly, the Crypto Fear & Greed Index at 10 (extreme fear) historically often precedes strong rallies, as panic recedes.
Lastly, looking back, Bitcoin has a history of big snap-back rallies after major drops. Since 2011, every crash of 50% or more has eventually reversed into a new bull run. “Bitcoin has had many declines of more than 50% over its history,” notes one analyst, yet it always found new highs later. In simpler terms, crypto markets tend to be mean-reverting in the long run: after a waterfall drop, bargains attract buyers and push prices up again.
Reasons for caution: On the other hand, many warn that risks still loom. Macro conditions remain fragile. The U.S. banking stress in March 2023 and unexpected tariff news could still spook markets. If inflation stays stubborn, the Fed might remain tight, which would further pressure crypto. Technical support levels are broken: major indicators (like Bitcoin’s 50-week moving average) have been decisively breached. One trading analyst warns that unless $88,000–90,000 holds as support, Bitcoin could revisit multi-month lows below $80k. In fact, veteran trader Arthur Hayes predicted Bitcoin might again drop to the low $80k range before bottoming. Another forecast by “CryptoBullet” even envisions a pullback to around $40,000 in 2026 if the entire cycle shifts down.
So, will a rebound come soon? Historically, big crypto corrections last months and often bottom out slowly. Some analysts argue that a sustainable bottom might only be near if selling pressure abates. A report from Yahoo Finance (published by BitPinas) even said Bitcoin has officially entered a bear market (down >20% from its high) and that it may linger unless new buying emerges.
Ultimately, no one can predict timing. As one crypto commentator put it, “Every dip, some people think it’s the end of time. Time continues.”. In practice, prospective buyers often wait to see stability. Several experts note that any bounce will likely be volatile. For example, ZebPay’s COO cautions that while the long-term uptrend isn’t broken, “brief dips, even below recent $82K, cannot be ruled out”. In other words, don’t be surprised if prices wiggle around or even retest lows before shooting up.
Signs of a Rebound
• Technical oversold: Bitcoin’s weekly and daily indicators are hitting extreme lows. This historically attracts buyers.
• Clearing of leverage: The huge liquidations mean most forced sellers are out. With low open interest (down from $320B to $123B), the market could stabilize if fresh demand comes in.
• Macro hope: If the Fed pivots to cutting rates as expected later this year, liquidity will flood markets, which could reignite crypto rally. Even now, talks of a December cut have “sparked tactical buying”.
• Long-term conviction: Some long-only investors see this crash as a chance to buy lower. They point out Bitcoin’s fundamentals (like adoption and scarcity) haven’t vanished, so they’re ready to step in if they believe the worst is past.
Warning Signs It Could Fall More
• Broken supports: Key moving averages and price levels have failed. If Bitcoin falls below roughly $86,000–88,000 on a closing basis, technical charts would look worse, possibly drawing in more sellers.
• Risk events: Unexpected global events (geopolitical crises, credit crunch, worse-than-expected inflation) could trigger another leg down. Given how quickly confidence eroded in November, markets can turn on a dime.
• Regulatory shocks: New crackdowns (e.g. SEC lawsuits or foreign country bans) could spook investors. Crypto has learned that headlines can drive wild swings.
Given both sides, most specialists recommend caution. As NerdWallet’s analysis says, “timing the market is a gamble. Tops and bottoms can only be identified in hindsight”. This means you often only know a rebound has really begun after it already happened.
In short: a rebound could happen soon if conditions improve, but it’s not guaranteed. The market is extremely volatile, and volatility cuts both ways. Novice investors should be ready for large up-and-down swings. If “crypto rebound will really come in the near future,” it may come in fits and starts rather than as a sudden uninterrupted surge.
Must Read: Quantum-Proof Your Crypto~ 5 Future-Proof Strategies to Safeguard Your Investments Today
How Low Will Bitcoin Go?
Everyone asks: How low can Bitcoin go in this crash? The truth is, no one knows for sure. We can outline some scenarios based on past patterns and current analysis:
• Optimistic range ($60k–$80k): Several analysts see roughly a 50% retracement from the October peak as a plausible bottom. For example, one market commentator wrote that “a drawdown of 50% from its peak (to around $60,000 per token) could certainly be possible. But I wouldn’t bet on a drawdown steeper than that key level.”. This view suggests Bitcoin may find support somewhere between $60k and $80k. Indeed, Bitcoin has often retraced around half of its prior rise before resuming an uptrend. Buying dips in this range has historically been profitable, according to some analysts.
• Conservative base (~$80k): Some charts or analysts argue the true low may already be in. For instance, recent lows around $80–85k may mark a short-term floor, with Bitcoin potentially bouncing from here if no new bad news emerges. If leveraged sellers are exhausted, the price might not revisit deep levels. Finder.com reported that Bitfinex analysts believe the pace of losses has started to slow and “a sustainable bottom may be nearing.”.
• Bearish scenario ($40k–$60k): In a more pessimistic outlook, Bitcoin could fall significantly further if negative forces intensify. The TradingView analyst “CryptoBullet” suggested Bitcoin could retest $110k and then dive roughly 60% to about $40,000 in 2026. CryptoNews (via BitPinas) noted that past cycles saw 77–84% drops from peak, and if a similar pattern unfolded, an 80% fall from $126k would put BTC in the mid-$20k range. While these are extreme possibilities, they serve as cautionary tails: nothing is impossible in crypto’s history.
• Short-term overshoots: Even if the true bottom is in sight, Bitcoin could briefly overshoot to the downside due to panic. As the popular Reddit sentiment post put it, crypto’s nature means the market can continue down “a lot more” even when it feels hopeless, or unexpectedly snap back—“This is the moment.” (paraphrased, since we can’t cite Reddit, but it reflects reality). In practical terms, if breakdown fears grow, prices might test lower supports before rebounding.
What do major voices say? The 24/7 Wall St. newsletter (Chris MacDonald) reckoned that even a 50% drop (to about $60k) would not break Bitcoin’s overall trend, and that any further decline beyond that is unlikely. Similarly, BitPinas quotes Gareth Soloway projecting a bottom near $75k by early 2026. Meanwhile, Yahoo Finance (citing cryptonews) even declared Bitcoin was in a bear market and warned that if $93k fails, a deeper drop could occur.
Key takeaway: There is no precise way to know how low Bitcoin will go in real time. Current prices (~$87k) are already ~27% below the October peak. If history is a guide, Bitcoin has before retreated 40–50% after major peaks, but has also had 70–80% crashes in extreme cases. A reasonable expectation might be that Bitcoin won’t go to, say, single-digit thousands overnight – most market participants believe support should emerge well above those levels this cycle. But short of seeing it happen, caution is warranted.
For practical purposes, many analysts suggest this range: $60k–$80k as a plausible bottom area. In that range, Bitcoin’s decline would be painful but within historical norms. Below $60k would be more severe than past cycles except the 2022-2023 crash (when it fell to $15k). If Bitcoin does fall toward $40k–$50k (extreme scenario), it would likely signal a full-blown capitulation. Most experts currently do not see that as the base case, but cannot rule it out completely under some scenarios.
As a beginner investor, it’s important to remember: targets and predictions often miss the mark. The market tends to do what few expect. If you are wondering “How low will Bitcoin go?”, keep in mind analysts’ ranges but prepare for surprises. The safest approach is to plan your investments without assuming a bottom price. For example, some suggest dollar-cost averaging or buying small amounts on dips, rather than waiting to hit an exact number.
After reading (Click here) for Part-2: Crypto Crashing: Why Bitcoin Is Falling and How Low It Can Go Part2 at “TheFitFinance”
