Bitcoin, the world’s largest cryptocurrency, has plunged 21% in November, recording its steepest monthly decline since June 2022. The digital currency fell from around US$126,000 in early October to below US$81,000 by late November, shedding nearly a third of its value in just over a month.
The sell-off has been driven by several factors. Large outflows from crypto exchange-traded funds (ETFs) contributed heavily to the decline, with one fund alone seeing close to US$3 billion withdrawn this month. Such withdrawals signal reduced investor confidence and have added pressure on prices.
Forced liquidations of leveraged positions also played a major role. Many traders who had bet on Bitcoin’s rise with borrowed funds were forced to sell as prices dropped, triggering a cascade of selling across the market. Analysts note that this has intensified volatility, especially in a market where large holders, often called “whales,” can sway prices significantly.
Global economic uncertainty, particularly concerns about interest rates and regulatory policies, has further contributed to investor caution. High-risk assets such as cryptocurrencies are being sold off in favor of safer investments, adding to the downward pressure.
Despite strong gains over the past two years, 153% in 2023 and 122% in 2024, this sudden correction underscores the volatile nature of the crypto market. Market experts suggest that while short-term losses may continue, long-term investors could view the current dip as a potential buying opportunity, provided they can tolerate high levels of risk.
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