The digital asset market has seen a sharp slide over the past week. This is particularly evident in Bitcoin price. From an October peak near $126,000, BTC’s value has fallen over 25 percent, hitting levels around the $90,000 mark. This has erased virtually all of its gains for 2025.
A key reason for the decline is the broader macroeconomic shift away from risk assets. Earlier, market participants had anticipated that the Federal Reserve might begin cutting interest rates, which supported speculative assets, including cryptocurrencies. However, as officials signalled a more cautious tone and inflation data remained sticky, expectations for cuts were pushed back. With higher interest rates and more expensive financing, speculative assets such as Bitcoin became less attractive.
Simultaneously, institutional demand that had supported the rally began to weaken. Spot Bitcoin ETFs in the US recorded significant net outflows in early November, reflecting waning appetite or profit-taking among large investors. For example, the flow data show several days of outflows totalling hundreds of millions of dollars.
Another important factor is on-chain behaviour: miners, large wallets, and long-term holders appear to have increased selling or moved coins into exchange-accessible addresses. These actions raise the available supply that sellers can draw on, and reduce the “liquidity cushion” that earlier limited downside. While exact quantities are less clearly reported, analysts describe this as part of the recent unwind.
The sentiment reversal has been dramatic. With the rally topped out and new inflows slowed, market sentiment shifted from “greed” to “fear”. The broader crypto market reportedly lost over $1.2 trillion in value over about six weeks, suggesting the current move resembles a full correction phase.
Also Read: Will Bitcoin See a Short-Term Recovery or a Deeper Correction?