Bitcoin performs weakly
Bitcoin (BTC-USD) is struggling with value holding, trading just above $88,000. This is about 30% below its October peak of $126,000. November is shaping up as the weakest month for Bitcoin since June 2022. Experts point to three main factors causing the decline.
ETF outflows put pressure on market
Exchange-traded funds (ETF) saw $3.5 billion leave Bitcoin in November, the largest outflow since February. Markus Thielen, founder and CEO of 10X Research, said that institutional investors have largely stopped buying Bitcoin. “These ETFs have turned into sellers. As long as they keep selling, the market will struggle to rise or recover,” he told Yahoo Finance.
Stablecoin growth slows
Stablecoins, digital currencies tied to the US dollar, usually provide stability during market swings. But their growth has slowed, showing less money entering crypto. About $800 million moved out of crypto into regular currencies last week. Total stablecoin market value dropped $4.6 billion through November 1, according to DeFiLlama. Thielen noted that money is leaving the crypto market, which is why Bitcoin’s dominance is not increasing. Even temporary gains after hints of a Federal Reserve rate cut may not last until the FOMC meeting on December 9.
Long-term holders sell
Long-term Bitcoin holders are selling during the downturn, questioning whether historical cycles or “halving” events will repeat. Nicolai Søndergaard, research analyst at Nansen, told Yahoo Finance, “There has been OG people selling every single cycle. I think they just reach that point where they decide, okay, maybe I've gotten old enough, and I want to use this money now for something else.”
Impact on crypto market
The total cryptocurrency market has fallen from $4.28 trillion on October 6 to $2.99 trillion as of Monday. Ethereum (ETH-USD) dropped 38%, and Solana (SOL-USD) fell more than 40% over the same period. Analysts say that institutional buying or corporate purchases may help stabilize the market. Companies like Strategy and other digital asset treasuries have slowed Bitcoin purchases. Even miners like IREN, Riot, and Mara Holdings are down over 30%, despite shifting toward AI services.
