Bitcoin is on track for its steepest monthly drop since 2022, with the cryptocurrency hovering around $95,000 as of November 18, 2025, after reaching a high above $126,000 at the end of October.
Recent reports indicate
, the decline has intensified due to unprecedented outflows from exchange-traded funds, changing signals from the Federal Reserve, and declining investor confidence, casting doubt on the durability of the crypto market’s recent surge during the Trump administration.
The U.S. spot
Bitcoin
ETF sector experienced $1.32 billion in withdrawals from November 10 to 14, with
BlackRock’s IBIT and Fidelity’s FBTC seeing the largest outflows
. This comes after $2.4 billion was pulled out in early November, pointing to a widespread retreat from speculative positions. At the same time,
Ethereum
ETFs
suffered even sharper losses
, with net outflows totaling $728.3 million in the same timeframe. Experts attribute this pattern to investors taking profits after October’s rally and a lack of new drivers for further price increases.
Major institutional investors have also come under strain.
MicroStrategy, which accumulated a $14 billion Bitcoin holding this year
, saw its stock fall 1.2% in premarket trading as Bitcoin’s value slipped. Likewise,
American Bitcoin Corp., supported by Donald Trump’s sons, posted a profit for the third quarter
but reported a 1.3% drop in share price after earnings as Bitcoin continued to decline. The company, which
mines Bitcoin at a lower cost than traditional holders
, owns 4,004 BTC worth about $400 million.
The Federal Reserve’s policy direction remains a major unknown
. While some, such as Dallas Fed President Lorie Logan, support holding off on rate cuts until inflation is clearly under control,
others, like New York Fed President John Williams, suggest rate reductions could come as soon as December
.
Michael Hartnett of Bank of America believes the Fed needs to intervene
to prevent a “liquidity crisis,” pointing out that Bitcoin’s 35% drop from its peak and Ethereum’s 45% slide are signs of a stressed market. Still, Boston Fed President Susan Collins urges caution, stressing that any policy changes should be guided by incoming data.
Market mood has turned decidedly negative.
The Crypto Fear and Greed Index fell to 16
— its lowest point since February 2025 — as Bitcoin neared its lowest level in six months.
Bitwise CEO Hunter Horsley, on the other hand, believes the bear market could be ending soon
, pointing to stronger fundamentals from ETF growth and clearer regulations under the new administration.
Blockchain data shows signs of late-stage capitulation
, though experts are divided on whether the market has reached the necessary conditions for a true bottom.
Technical indicators offer a mixed outlook.
Strategy (MSTR), the largest publicly listed Bitcoin treasury firm
has lost close to 60% of its value since July, a drop made worse by share dilution from equity and convertible bond sales. The company’s price-to-earnings ratio is now 8.67,
reflecting doubts about its strategy of passively accumulating Bitcoin
. Meanwhile,
Bitcoin miners specializing in AI and high-performance computing saw their shares jump
in premarket trading after NVIDIA’s strong earnings, signaling renewed optimism in the tech sector.
Global economic trends add further complexity. Japan’s $135 billion stimulus and a weakening yen have
weighed on Bitcoin
, which has often benefited from yen carry trades in the past. A possible interest rate hike by the Bank of Japan could spark more volatility, while U.S. fiscal policy and liquidity remain key factors.
As the Federal Reserve considers its next steps and ETF withdrawals continue, the cryptocurrency market stands at a pivotal moment. Whether this downturn is a short-term correction or signals a more fundamental change will hinge on institutional strength, regulatory developments, and
the Fed’s capacity to manage inflation while maintaining market stability
.
