November 2025 has been a rough month for Bitcoin. After reaching an all time high of over $126,000 in October, bitcoin dipped below $81,000, an over 35% drop. This marks Bitcoin’s worst monthly performance since 2022, erasing all its year-to-date gains and pushing it into bear market territory.
Bitcoin broke key support levels (e.g., $106,000, $100,000, $90,000), triggering algorithmic selling from trend-following funds and margin calls on leveraged positions. The Relative Strength Index (RSI) signaled oversold conditions but failed to spark a rebound, while breaking the 50-week moving average flashed bearish signals.
Investors have rapidly de-risked from high-growth, speculative assets amid concerns over an “AI bubble” and over-reliance on a few tech giants (e.g., the “Magnificent Seven” stocks). Bitcoin, often treated as a high-beta risk asset correlated with tech equities, has suffered alongside them. A post-election rally in risk assets fizzled out in November as Wall Street pulled back from volatility.
Sticky inflation, a resilient U.S. labor market, and hawkish signals from Fed Chair Jerome Powell have dashed hopes for aggressive interest rate cuts. Markets now price in a lower chance of a December 2025 cut (or none at all), reducing liquidity for risk assets like Bitcoin. Higher-for-longer rates make yield-bearing investments (e.g., Treasuries) more attractive than non-yielding crypto.
U.S. spot Bitcoin ETFs, which fueled much of 2025’s bull run, have reversed course with record redemptions. November saw nearly $3 billion in net outflows, including a single-day record of $903 million on November 21—the highest since February. This reflects fading institutional confidence and profit-taking.
MicroStrategy, a major corporate Bitcoin buyer (holding over 400,000 BTC), faces potential exclusion from MSCI indexes after the firm questioned classifying crypto-heavy companies as “operating businesses” versus “funds.” A January 2026 ruling could trigger $2.8–$8.8 billion in passive fund outflows, forcing sales of MSTR stock and indirectly pressuring Bitcoin.
Only time will tell if the low $80Ks is the bottom of bitcoin’s price this cycle.