Bitcoin is struggling to find its footing as it heads toward its worst monthly performance since June 2022. Prices are hovering near $91,000 per token, marking a roughly 28% drop from the all-time highs of over $126,000 seen in October. Unfortunately for crypto bulls, the problems facing the market show few signs of disappearing.
Three main challenges have emerged as traders sift through the wreckage of this month’s decline. First, big money is leaving. Outflows from Bitcoin exchange-traded funds (ETFs) hit $3.5 billion in November, the largest exit since February. Markus Thielen, CEO of 10X Research, notes that institutional investors have essentially stopped buying. These funds have turned into sellers, and Thielen warns that the market will struggle to rebound as long as they keep offloading assets.
Second, liquidity is draining from the broader ecosystem. Investors usually park money in stablecoins—assets pegged to the US dollar—during volatile times. However, the total market value of stablecoins dropped by $4.6 billion through November 1. Last week alone, investors moved roughly $800 million out of crypto and back into regular cash. This indicates that money isn’t just sitting on the sidelines; it is actively leaving the market entirely.
Finally, the macroeconomic picture remains murky. While recent hints of a Federal Reserve rate cut gave prices a short-lived boost on Monday, experts expect the rally to fade before the Fed meets on December 9. The market is still reeling from a massive liquidation event on October 10 that wiped out $19 billion in a single day.
Adding to the selling pressure, long-term holders—often called “OGs”—are cashing out. While Bitcoin typically follows a four-year cycle, early adopters aren’t waiting for the next upswing. Nicolai Søndergaard of Nansen suggests many of these veterans are simply deciding to take profits and move on. With longtime believers selling into the downturn and new capital scarce, Bitcoin faces a difficult path to recovery.
