Bitcoin Crash 2025: The Shocking Meltdown No One Saw Coming — Biggest Drop Since 2022
Bitcoin is on track for its steepest monthly decline in more than three years, mirroring the market turmoil that followed the collapse of major crypto companies in 2022.
The world’s largest cryptocurrency plunged by as much as 6.4% on Friday, hitting $81,629 before slightly rebounding to $84,166 as of 7:42 a.m. London time.
Ether, the second-biggest digital asset, also tumbled 7.6%, slipping under the $2,700 mark.
Bitcoin posts worst month since 2022
Bloomberg data shows Bitcoin has dropped roughly 23% in November, marking its most severe monthly sell-off since June 2022.
Echoes of TerraUSD and FTX collapses
The ongoing slump is drawing comparisons to the 2022 crash triggered by the implosion of Do Kwon’s TerraUSD stablecoin, which cascaded into multiple corporate failures across the crypto industry.
That chain of events eventually led to the downfall of Sam Bankman-Fried’s FTX exchange, shaking confidence throughout global markets.
Even with supportive messaging from the pro-crypto Trump administration and rising institutional involvement, Bitcoin has now fallen more than 30% from its all-time high set in early October.
Liquidations intensify the crash
Massive liquidations have amplified the sell-off. On October 10, about $19 billion in leveraged token bets were wiped out, erasing nearly $1.5 trillion from the total cryptocurrency market value.
In just the past 24 hours, CoinGlass reported another $2 billion in liquidated leveraged positions, adding more pressure.
Institutional interest is also fading. Twelve U.S.-listed Bitcoin ETFs collectively recorded $903 million in net outflowson Thursday—the second-largest daily withdrawal since they debuted in January 2024.
Open interest in perpetual futures has dropped 35% from its October peak of $94 billion, signaling a sharp decline in speculative trading.
Weak global markets deepen crypto losses
Broader financial markets are offering little relief. U.S. stocks, which recently surged on AI optimism following strong Nvidia earnings, have since pulled back. Concerns about inflated valuations and doubts over a potential Federal Reserve rate cut in December are weighing on sentiment.
Market analysts warn that the full extent of the downturn remains uncertain.
“Sentiment is extremely weak across the market. There appears to be a forced seller, and it’s unclear how far this will go,” said Pratik Kala, portfolio manager at Australia-based hedge fund Apollo Crypto.
Recent market recap
On November 3, Bitcoin traded around $107,500, down 2.2% as investors awaited key U.S. jobs data.
Ethereum slid 3% to near $3,750, while other altcoins also struggled amid thin trading volumes.
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