Published: Nov 22, 2025 at 18:22
The selloff pushed Bitcoin’s price down over 35% from its October peak and coincided with broad weakness across risk assets, including a slump in major stock indices.
The extended market correction intensified significantly in the days leading up to November 22nd, with Bitcoin (BTC) falling to its lowest point since April, briefly trading near $80,600 and effectively erasing all of its gains for 2025.
The great deleveraging and macro contagion
The total crypto market capitalization lost over $1.2 trillion in a six-week span, signaling a deep, painful deleveraging event.
Analysts pinpointed several macro factors driving the decline. Persistent uncertainty and the perceived hawkishness from the U.S. Federal Reserve regarding a December interest rate cut reduced liquidity and increased the cost of capital, forcing investors out of high-risk, momentum-driven assets like crypto.
Moreover, concerns over the valuation and stability of the Artificial Intelligence (AI) stock sector—which crypto has recently become highly correlated with—triggered a broader “risk-off” sentiment that hit leveraged crypto positions hardest.
Despite the dramatic price action and heavy outflows from public Bitcoin and Ethereum ETFs, on-chain data showed a defiant counter-narrative. Corporate treasury holders and long-term funds (DATCOs) remained steadfast, with some, like Strategy, continuing to publicly announce new BTC purchases, often funded through debt/equity offerings. This illustrates a profound dissonance between short-term macro-driven selling and the continued, long-term accumulation by institutional conviction holders.