Black Friday for Bitcoin: cryptocurrency heads for worst month since 2022

Bitcoin is sharply losing ground and is approaching its worst monthly result since the crypto market crash in 2022. The November drop has already exceeded 25%, and the total market capitalization has fallen below 3 trillion dollars for the first time since April. Bloomberg reports.

Bitcoin is falling: what caused the massive crash

On Friday, the price of Bitcoin fell to $80,553 - down 7.6% in one day. Ethereum and most altcoins lost up to 9%. The key factors were massive liquidations and the exit of institutional investors.

The market collapsed after a wave of liquidations on October 10, when $19 billion in margin positions were wiped out, effectively 'burning' about $1.5 trillion in market capitalization. According to CoinGlass, another $2 billion in open positions were liquidated in just the last day.

Market participants note:

• simultaneous forced liquidations and ETF sales make the market extremely vulnerable
• institutions are hesitant to buy the 'dip'
• the crypto traders' sentiment index has fallen to the 'extreme fear' level.

The situation was worsened by a significant sell-off by long-term BTC holders. A wallet known as Owen Gunden, which had held Bitcoins since 2011, sold assets worth $1.3 billion and completely closed its position.

Crypto market in panic: what experts say and how investors react

Despite the crypto-friendly policy of Donald Trump's administration and the active adoption of digital assets by major corporations, Bitcoin has dropped more than 30% since the October peak. Experts warn: the decline may continue as the market faces selling pressure from multiple sources simultaneously.

Bitcoin ETFs in the U.S. are seeing a sharp outflow: in just one Thursday, $903 million were pulled from 12 funds - the second-highest rate since their launch. The volume of open futures positions has decreased by 35% from the peak in October.

Analysts also note risks for companies that copied MicroStrategy's strategy, which massively accumulated BTC under the leadership of Michael Saylor. Due to the price drop, their stocks are under pressure, and JPMorgan warns: MicroStrategy may lose its place in the Nasdaq 100 and MSCI USA indexes.

The traders' sentiment index, which accounts for volatility, demand, and momentum, is now at its lowest point since 2022 - the market is engulfed in fear.

Previously we reported that Ukrainians purchased Bitcoin worth $882 million in a year.