Bitcoin has wiped out all its gains for 2025, dropping below the year’s starting price amid a widening crypto bear market. This sharp decline, triggered by global economic worries and policy shifts, happened over the weekend of November 16, leaving investors reeling from a peak of over $126,000 just weeks ago.
The Weekend Plunge and Key Milestones
Bitcoin fell to a low of $93,029 on Sunday, November 16, marking its weakest point since early May. This drop erased the cryptocurrency’s entire yearly advance, pushing it below the $93,714 closing level from the end of 2024.
The slide began after Bitcoin hit an all-time high of $126,251 on October 6. Markets had been riding high on optimism following President Donald Trump’s election win, which promised a pro-crypto environment. But that enthusiasm faded fast.
By Monday morning in Asia, Bitcoin had recovered slightly to around $94,869. Still, the token has lost more than 25% from its October peak, signaling a shift to bearish territory.
Analysts point to a series of events that fueled this downturn. From massive liquidations to fading hopes for quick interest rate cuts, the crypto space feels the pressure.
Why Bitcoin Is Crashing Now
Several factors have converged to drive Bitcoin’s steep fall in November 2025. Global risk aversion has hit hard, with investors pulling back from volatile assets like cryptocurrencies.
One major trigger was President Trump’s unexpected comments on tariffs. His plans for heavy duties on imports from China, Mexico, and Canada sparked fears of inflation and supply chain disruptions. These remarks, made in early October, sent shockwaves through financial markets.
Crypto markets reacted swiftly. Bitcoin dropped 10% in a single day, leading to over $3.2 billion in leveraged position liquidations. This event exposed the dangers of overleveraged trading in a fragile environment.
Economic signals added to the gloom. The Federal Reserve’s hints at pausing rate cuts amid persistent inflation worries have dampened market spirits. Stocks and other risk assets have also suffered, but crypto led the retreat.
Here are some key contributors to the bear market:
- Tariff fears: Trump’s policies raised concerns about higher costs and slower global growth.
- Leverage wipeout: Billions in crypto derivatives were liquidated, amplifying the sell-off.
- Institutional outflows: Bitcoin spot ETFs saw net withdrawals for several straight days.
- Broader sentiment: A shift to risk-off mode, with investors favoring safer assets like gold.
Market Reactions and Broader Crypto Impact
The pain has spread beyond Bitcoin. The total crypto market cap has shrunk by about 20% since early October, with major altcoins like Ethereum falling to $3,558.
Social media buzz reflects the chaos. On platforms like X, users debate if this is the end of the bull run or just a deep correction. Some blame market manipulation, while others see it as a buying opportunity.
Traditional markets felt the ripple too. The S&P 500 dipped, though not as sharply as crypto. Gold, in contrast, has surged 55% year-to-date, outshining Bitcoin’s negative 1.69% performance.
Investors are watching whale activity closely. Large holders have moved thousands of Bitcoins to exchanges, adding selling pressure.
| Bitcoin Price Milestones in 2025 | Date | Price Level | Key Event |
|---|---|---|---|
| Year Start | January 1 | $93,714 | Post-election rally begins |
| All-Time High | October 6 | $126,251 | Peak optimism on pro-crypto policies |
| First Major Drop | October 10 | Below $100,000 | Trump’s tariff comments |
| Recent Low | November 16 | $93,029 | Erases yearly gains |
| Current Level | November 17 | $94,869 | Slight rebound amid uncertainty |
This table shows how quickly sentiment flipped from euphoria to fear.
Traders report extreme fear levels, with sentiment indexes hitting lows not seen in months. Yet some see silver linings, like potential rebounds if policy clarity emerges.
Expert Views on the Downturn
Industry voices offer mixed takes on the situation. Matthew Hougan, chief investment officer at Bitwise Asset Management, called crypto the “canary in the coal mine” for broader market risks.
Other analysts predict Bitcoin could test even lower supports, perhaps around $90,000, before stabilizing. They tie this to ongoing uncertainties, including Fed decisions and geopolitical tensions.
On the bullish side, some forecasts suggest a recovery by year-end. One prediction sees Bitcoin climbing back toward $114,500 if ETF inflows resume and institutional demand picks up.
Logical reasoning supports caution. Past cycles show bear phases often follow hype peaks, especially when external shocks like tariffs disrupt growth expectations.
Recent events, such as a $19 billion leverage liquidation in early October, highlight systemic risks. Experts urge focusing on fundamentals over short-term noise.
What Lies Ahead for Bitcoin Investors
Looking forward, the path remains unclear. If Trump’s administration delivers on crypto-friendly reforms, a rebound could happen. But persistent tariff threats and economic slowdowns might prolong the bear market.
Predictions vary. Some models forecast Bitcoin trading between $77,000 and $155,000 through 2026, assuming bullish trends return. Others warn of a multi-year doom cycle if macro conditions worsen.
Investors should watch upcoming Fed meetings and policy announcements. A rate cut could spark renewed interest, while delays might deepen the slump.
For now, the market grapples with erased gains and shaken confidence. History shows crypto’s resilience, but this downturn tests even seasoned holders.
Share your thoughts on Bitcoin’s future in the comments below, and pass this article along to fellow investors for more insights.
