Bitcoin Suffers Sharpest Monthly Drop in Over Three Years Amid Market Turmoil

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Bitcoin, the world’s largest cryptocurrency, is experiencing its steepest monthly decline in more than three years, falling over 21% so far this month—its largest drop since June 2022.

The slump is largely attributed to forced liquidations and a broader shift away from riskier, speculative assets. Many major altcoins have also tumbled, amplifying the downturn across the crypto market.

On November 25, Bitcoin traded near $88,000 after bouncing back from a seven-month low triggered by recent sharp losses.

“The crypto market is balancing between a deep washout and selective recovery,” said Avinash Shekhar, Co-Founder & CEO of Pi42. “The recent crypto winter crash cleared excess leverage and thinned liquidity, while shifting Fed rate expectations and new ETF issuances are driving episodic flows.”

Key Drivers Behind the Drop

1. Profit BookingBitcoin has slid sharply since early October, dropping from roughly $126,000 to below $82,200, according to CoinGecko. Analysts note that long-term investors have sold about 800,000 BTC over the month—the largest wave of profit-taking since January 2024.

2. Federal Reserve Rate UncertaintyBitcoin typically performs well in low-interest-rate environments. However, mixed signals from the Federal Reserve regarding a potential third rate cut in December have created uncertainty, pressuring BTC prices. Shekhar added, “Technical and on-chain signals suggest a potential rebound if buyers return, although structural downtrend markers persist. Optimism over a possible rate cut has eased some macro pressure and triggered tactical buying.”

3. Risk-Off SentimentBitcoin’s recent decline mirrors weakness in tech stocks and other risk-sensitive assets. Macro concerns—including trade tensions, market volatility, and high valuations in AI-related companies—have dampened investor sentiment.

Crypto Market Outlook

Despite the sharp drop, experts see the decline as part of normal market behavior following a strong rally. Raj Karkara, COO of ZebPay, said, “Investors are locking in profits and sentiment is adjusting to global cues. Short-term caution is evident, but there’s no sign of a structural breakdown in Bitcoin’s long-term trend. While brief dips below the recent $82K range are possible, on-chain metrics, institutional interest, and long-term holder conviction remain strong.”