Bitcoin Faces Its Sharpest Monthly Drop Since the 2022 Crypto Meltdown
Bitcoin is on track for its worst monthly performance since 2022, a year marked by the high-profile implosions of TerraUSD, Celsius, Voyager, and FTX.
On Friday, the world’s largest cryptocurrency fell as much as 6.4%, sliding to $81,629 before partially recovering. As of early morning trading in London, Bitcoin hovered near $84,166, while Ether dropped 7.6%, sinking below $2,700.
November’s declines now total roughly 23%, making it Bitcoin’s steepest monthly fall since June 2022—the peak of the TerraUSD-triggered crisis that sent shockwaves through the entire sector.
A 30% Plunge From October’s Record High
Despite a pro-crypto White House under U.S. President Donald Trump and rising institutional participation earlier this year, Bitcoin has now dropped more than 30% since hitting a record high in early October.
Much of the downturn can be traced to a violent market event on October 10, when over $19 billion in leveraged crypto positions were wiped out. This liquidation cascade erased approximately $1.5 trillion from crypto’s total market value—setting the stage for the sustained sell-off that followed.
Leveraged Liquidations Accelerate the Downtrend
The pressure has only intensified in the past 24 hours.
Data from CoinGlass shows that an additional $2 billion in leveraged positions were liquidated, compounding the damage and fueling deeper price declines.
Institutions, meanwhile, show little interest in stepping in to stabilize the market.
Institutional Outflows Surge: Bitcoin ETFs See Major Withdrawals
A basket of 12 U.S.-listed Bitcoin ETFs recorded $903 million in net outflows on Thursday—marking their second-largest single-day redemption since launching in January 2024.
Other institutional indicators also point toward a retreat:
- Open interest in perpetual futures is down 35% from its October high of $94 billion
- ETF flows have flipped negative
- Institutions continue to avoid “buying the dip”
The absence of institutional support has left the market exposed to further downside risk.
Broader Market Weakness Adds Fuel to the Fire
The macro environment is offering little relief.
U.S. stocks, which recently rallied on enthusiasm around artificial intelligence and strong Nvidia earnings, have reversed gains due to:
- Concerns over overstretched valuations
- Growing doubts about a potential Federal Reserve rate cut in December
This risk-off sentiment is spilling into crypto, amplifying volatility and accelerating sell pressure.
Analysts Warn of Forced Selling and Potential Margin Calls
Market observers report increasingly fragile sentiment.
“Sentiment across the board is incredibly poor. There appears to be a forced seller in the market, and it’s unclear how deep this goes,”
— Pratik Kala, Portfolio Manager at Apollo Crypto (Australia)
Other analysts point to potential stress among major Bitcoin holders.
Tony Sycamore of IG Australia noted that traders may be pushing to test the liquidation threshold of Michael Saylor’s Bitcoin-accumulating company—commonly referred to as “Strategy.” A deeper slide toward the firm’s break-even levels could trigger margin calls on its leveraged Bitcoin holdings.
Shares of Strategy Inc. closed 5% lower on Thursday.
Bottom Line: Bitcoin’s Worst Month Since 2022 Signals a Deepening Market Reset
Bitcoin’s worst month since the 2022 crash reflects a combination of factors:
- Massive leveraged liquidations
- Heavy Bitcoin ETF outflows
- Softening institutional demand
- Broader market weakness
- Concerns over forced selling and margin risks
As November draws to a close, traders are bracing for more volatility—and watching closely to see whether institutional buyers return to stabilize the market, or if deeper capitulation lies ahead.
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