Bitcoin Tick Up Follows Sharp Decline Erasing All 2025 Gains
By Reuters | Published on 18 November 2025
Bitcoin experienced a modest rebound on Tuesday after a steep drop erased all its gains for the year 2025. The cryptocurrency fell below the $90,000 mark for the first time in seven months, reflecting a broader drying up of investor appetite for risk across financial markets.
Bitcoin’s Price Movement and Market Context
On Monday, Bitcoin plunged sharply, wiping out the progress it had made throughout the year. The digital currency, which reached a peak of around $126,000 in October, is now nearly 30 percent below that high, hovering at about $91,338 during European trading hours after briefly dipping to $89,286. This decline is part of a wider trend in the cryptocurrency market, which has lost approximately $1.2 trillion in total market value over the last six weeks, according to data from market tracker CoinGecko. Ethereum, the second largest cryptocurrency, has also suffered significant losses, falling nearly 40 percent from its August peak of over $4,955. ### Factors Driving the Selloff
Market analysts attribute the cryptocurrency selloff to a combination of factors:
- Uncertainty over US interest rate policy: Growing doubts about future interest rate cuts by the US Federal Reserve have increased caution among investors.
- Risk-averse sentiment in broader financial markets: After a prolonged rally, markets have wobbled, prompting investors to reduce exposure to volatile assets like cryptocurrencies.
- Institutional and company selloffs: Institutions and publicly listed companies that had previously increased their crypto holdings during the rally are now exiting positions, accelerating the downward pressure.
Joshua Chu, co-chair of the Hong Kong Web3 Association, highlighted the fragility of market confidence in this environment: “When support thins and macro uncertainty rises, confidence can erode with remarkable speed.”
Joseph Edwards from Enigma Securities added that recent outflows from crypto exchange-traded funds (ETFs) suggest speculators who had hoped for supportive US regulations are now retreating. He noted, “The sell pressure here isn’t extraordinary, but it’s coming at a relative weak point on the buy side,” pointing to the aftermath of October’s flash crash during which around $19 billion in leveraged crypto positions were liquidated.
Impact on Crypto Companies and Treasury Holdings
The souring market sentiment has affected several crypto-focused public companies, including miners like Riot Platforms and Mara Holdings, as well as exchanges such as Coinbase, all seeing declines in their stock prices.
A notable trend this year has been the rise of companies in unrelated sectors adopting crypto by purchasing and holding Bitcoin on their balance sheets. However, Standard Chartered warns that a continued drop below $90,000 could leave about half of these firms’ Bitcoin holdings “underwater” — a term used when asset values fall below purchase costs. The bank estimates that listed companies collectively hold about 4 percent of all circulating Bitcoin and 3.1 percent of Ether.
Market Sentiment Remains Cautious
With leverage wiped out during the October flash crash and ongoing uncertainty about the regulatory environment and interest rate trajectory, sentiment across the crypto market remains subdued. Matthew Dibb, Chief Investment Officer at Astronaut Capital, summed up the mood: “All in all, sentiment is pretty low in crypto and has been since the leverage wipeout of October.”
As investors continue to grapple with the challenges posed by macroeconomic factors and risk aversion, the cryptocurrency market could remain volatile in the near term.
This article is based on reporting from Reuters and market data as of 18 November 2025.