November turned into one of the most difficult periods for bitcoin since 2022: the largest cryptocurrency has been losing ground rapidly, and many market participants now call this month the toughest in three years. A drop of more than 20% within just a few weeks has sharply worsened investor sentiment, turning the price decline into a chain reaction across other digital assets.

Scale of the decline and market reaction

By the end of the third week of November, bitcoin hovered near $83,000, at times falling below $81,000. This became the deepest correction since the market recovered from the 2022 crisis. At the start of the month the asset traded close to $110,000, and such a sharp reversal surprised even seasoned traders who are used to cryptocurrency volatility.

Investors note that the current downturn is accompanied by falling liquidity: major platforms report shrinking buy-side interest while selling pressure intensifies. Meanwhile, Ethereum, the second-largest cryptocurrency by market value, has been losing momentum even faster and on certain days fell more than 30%, amplifying the already negative market mood.

Over the past few weeks the total market capitalization of the crypto sector has also dropped noticeably. Many analysts describe the situation as a rare overlap of fundamental and psychological factors that are jointly weighing on the industry and creating conditions for panic-driven selling.

What drives the sell-off

November became a period when several negative trends converged and reinforced one another. Such combinations are extremely uncommon and typically lead to extended phases of instability. The main drivers behind the current downturn include:

• forced liquidations of leveraged positions among major traders;
• weakening demand from institutional investors;
• record-high capital outflows from crypto investment funds;
• growing global economic uncertainty;
• investor sentiment indices falling to extremely low levels;
• pressure from large market-making entities;
• declining liquidity across leading exchanges.

After events like these, many market players expect the correction to continue, as rebuilding confidence takes time. Large investors are not showing interest in long-term accumulation at this stage, which prevents the price from finding solid support.

Why altcoins behave unusually

Ordinarily, during bitcoin downturns, alternative cryptocurrencies experience even steeper declines. However, November became an exception: many altcoins saw much smaller losses, and several even posted gains. This unusual dynamic is attributed to capital rotation within the market, where some investors seek temporary safe havens among less overheated tokens.

Such behavior has caused bitcoin’s dominance to drop by several percentage points. This resembles the early phase of the so-called altcoin season, though traditionally that phenomenon occurs when the market is rising, not falling. Analysts highlight several clear indicators of capital shifting:

• stability among a number of top-50 coins;
• gains in select assets despite the overall market decline;
• decreasing correlation between bitcoin and the rest of the market;
• rising activity in privacy and DeFi sectors;
• slower decline in indices tracking altcoin capitalization;
• growing demand for tokens with lower inherent volatility.

These patterns make the current cycle unique and complicate predictions about what comes next. Many traders note that such structural changes often precede major recovery phases, though the timing of a potential rebound remains uncertain.

What the market may face next

As long as bitcoin remains under pressure, many participants are focused on the key support zone around $80,000–82,000. Technical analysts believe that if the price dips below this range, it could trigger a cascade of stop-loss liquidations, intensifying the decline. At the same time, a recovery scenario cannot be ruled out — historically, sharp corrections have often served as launchpads for new bullish cycles when critical levels held firm.

A more optimistic outlook assumes renewed institutional interest. If outflows from crypto funds slow down and large players resume accumulating bitcoin, this could mark the start of a recovery. Some analysts already argue that steady institutional inflows, especially in a softer monetary environment, may eventually push the price toward new highs.

But a more cautious forecast remains relevant: market confidence is severely damaged, and sentiment indicators point to extreme fear. Even if prices stabilize, any rebound may unfold gradually rather than through a strong rally. There is also a risk that without sizeable new capital, support below $82,000 may not hold — and in that case, the downturn could last longer than suggested by many historical models.