Causes of the cryptocurrency market crash in November 2025
The collapse of the crypto market in November 2025 was caused by macroeconomic shocks, structural failures and massive liquidations that affected liquidity.
The announcement of 100% US tariffs on Chinese imports unleashed global uncertainty and increased risk aversion among investors.
A wave of forced liquidations of more than $19 billion in leveraged positions exacerbated the decline, affecting market stability and its structures.
Macroeconomic factors and increased risk aversion
US-China trade tension and fear of stagflation increased uncertainty and risk sentiment, sinking crypto prices.
Investors withdrew capital amid rising volatility and macroeconomic doubts, affecting the flow of funds and demand for cryptocurrencies.
Investor capitulation and mass liquidations
Selling pressure increased due to the closing of approximately 1.6 million leveraged positions, which deepened the price decline.
Retail investors, exhausted and on margin calls, abandoned their positions, weakening typical resistance to declines.
Institutional negative flows and technical weakening
Bitcoin ETFs in the US recorded outflows of between $3.5 and $4 billion, reflecting institutional withdrawal from the market.
The reduction in liquidity and the withdrawal of market makers generated a vacuum that caused prices to fall in an amplified way with small sales.
Market recovery and behavior of the main cryptocurrencies
Bitcoin is projected to exceed US$90,000 by the end of 2025, evidencing an improvement in post-fall liquidity in November. This suggests a gradual return of buyers and trading volume.
The recovery in the crypto market is evident after the crash, with Bitcoin marking support levels near $91,000 as liquidity improves thanks to new capital inflows.
An improvement in institutional confidence and operations of large investors contributes to market stabilization and price consolidation after months of high volatility.
Bitcoin exceeding US$90,000 and improvement in liquidity
Bitcoin has regained ground, reaching above US$90,000 after hitting lows near US$80,000 in November, reflecting renewal of buyer interest.
The absorption of sales by ÎWWhales Fren and an increase in trading volume are clear signs that liquidity is improving and the decline is stabilizing.
Recovery of relevant altcoins
Altcoins like Ethereum and XRP show early signs of recovery, with moderate rises accompanying Bitcoin's rally and strengthening the alternative token segment.
Although the rise in altcoins is uneven, some such as BNB and Solana also report slight progress after a deep drop in November, suggesting an initial phase of reactivation.
Ethereum and prospects for XRP
Ethereum could reach prices between $3,200 and $6,500 by the end of 2025, driven by network improvements and institutional adoption, although volatility persists.
Regarding XRP, the outlook depends greatly on regulatory developments and adoption in payments, with no recent clear forecasts to end 2025, maintaining uncertainty.
Possible start of a new bullish cycle by the end of 2025
It is anticipated that a new bullish cycle could begin in cryptocurrencies towards the end of 2025, driven by greater regulatory clarity and increased institutional adoption.
Technical and fundamental factors point to a transition from recovery to a phase of sustained growth, with Bitcoin leading the movement and dragging altcoins.
Current sentiment of cryptocurrency investors
Current sentiment shows cautious optimism with price consolidation following the crash. Long-term investors buy in low ranges.
Although extreme fear prevails, recent Bitcoin rallies and moderate technical signals point to stabilization and possible gradual recovery.
The market reflects a mix of fear and hope, with prices consolidating and volumes rebounding after significant declines in November.
Cautious optimism and price consolidation
Bitcoin showed a rebound of 3.28% after hitting lows near $80,000, indicating accumulation and renewal of buyer interest.
Prices consolidate into key ranges, with institutional buyers and strong holders reinforcing bases that could facilitate an upcoming rally.
Macroeconomic uncertainty and institutional behavior
Fed monetary policy and uncertain macroeconomic data increased volatility and reduced institutional confidence in cryptocurrencies.
Institutional flows decreased significantly, reflecting a conservative stance and caution in the face of high volatility and the global risk environment.
Particular situation of altcoins and market perception
Altcoins showed mixed dynamics: declines in tokens such as Celestia and Helium, while Ethereum and Solana show signs of accumulation.
The general perception is one of cautious optimism, with the altcoin market still without a strong season, despite growing institutional interest and accumulation.
Technical and fundamental factors that support recovery
The recovery of the crypto market in 2025 is sustained by the increase in institutional demand and a more accommodative monetary policy that boosts liquidity.
The restricted supply of assets like Bitcoin, along with regulatory and technological advances, strengthens confidence and favors a gradual and sustained rebound.
More favorable global macroeconomic conditions and lower volatility compared to previous years also support the stabilization and growth of the sector.
Expectation of rate cuts and better global liquidity
The possibility of a less restrictive Fed with rate cuts creates an enabling environment that increases appetite for risky assets such as cryptocurrencies.
This increased global liquidity is reflected in the massive influx of institutional capital and related financial products, improving the stability of the crypto market.
Technical purchasing and consolidation signals at key levels
Technical indicators such as MACD and RSI show bullish signals in key cryptocurrencies, indicating trend change and strength in buying movements.
Consolidation at historic support levels, supported by increases in volume and continuation chart patterns, confirms the strength of the rally.
Regulatory impact of the CFTC's authorization to trade cryptocurrency futures in the US.
The CFTC authorized trading of futures and spot products with cryptocurrencies, expanding federal regulation and improving market transparency.
It allows the use of BTC, ETH and USDC as collateral in derivatives, driving innovation and strengthening institutional trust in the US.
The measure establishes strict requirements for intermediaries, increasing control and reducing risks of fraud and manipulation in the crypto sector.
