Bitcoin Faces Three Headwinds Amid 28% Drop from All-Time High
In November 2025, Bitcoin has encountered a turbulent market environment, plunging from its record high of $126,000 to a seven-month low near $80,553. As of late November, the cryptocurrency is trading around $91,150, still 28% below its peak and struggling to regain momentum. Analysts point to three major headwinds that are weighing on Bitcoin’s performance and investor sentiment.
1. Rapid Deleveraging and Market Volatility
The recent downturn has been marked by a swift deleveraging across the crypto market. Bitcoin’s price fell 36% from its October high in just 47 days, a much faster drawdown than previous corrections. This rapid decline has triggered widespread liquidations, with Bitcoin liquidations dropping 87% to $2.21 million, signaling that most leveraged positions have already been flushed out. While this reduces the risk of cascading sell-offs, it also indicates that bulls are not rushing back in, leading to a period of muted trading and defensive positioning.
On-chain analytics reveal a divergence in investor behavior: large wallets are accumulating Bitcoin during the dip, while retail traders continue to sell. Historically, such a pattern has preceded market reversals, but for now, the market remains cautious.
2. Falling Bitcoin Dominance
Bitcoin’s dominance—the share of its market cap relative to the total crypto market—has defied its usual pattern during corrections. Typically, Bitcoin dominance rises during broad sell-offs as riskier altcoins fall faster. However, this time, dominance has actually dropped, falling from 61% to as low as 58.5% before recovering slightly to just over 59%. This suggests that Bitcoin was hit harder than the broader market, a departure from previous cycles.
The drop in dominance signals that altcoins have shown relative resilience, but it also raises concerns about Bitcoin’s ability to lead the market out of its current slump. Analysts note that the speed and depth of the correction, combined with falling dominance, may indicate further weakness ahead, especially as Bitcoin approaches the end of its typical four-year cycle.
3. Broader Macro and Sentiment Challenges
Beyond technical factors, Bitcoin is grappling with broader macroeconomic headwinds. Global risk-off sentiment, regulatory uncertainty, and shifting investor appetite have all contributed to the current downturn. Funding rates have fallen sharply, nearing flat at +0.00186%, reflecting a lack of speculative fervor. Meanwhile, the total crypto market cap has slid from recent highs, and traders are closely watching key levels: Bitcoin reclaiming $92,000–$94,000 and the total market cap surpassing $3.1 trillion–$3.2 trillion would be needed to confirm a recovery.
For now, the market remains choppy, with sideways action and defensive positioning expected until clearer signals emerge. Ethereum and other major cryptocurrencies are also showing muted reactions, with Ethereum trading just above $3,018 and altcoins experiencing mixed results.
What’s Next for Bitcoin?
As Bitcoin sits at a critical juncture, traders and investors are watching for signs of a reversal. The combination of rapid deleveraging, falling dominance, and broader macro challenges has created a complex environment. While large wallets accumulating during the dip could signal a potential bottom, the lack of bullish momentum and continued retail selling suggest caution is warranted.
Key levels to watch include Bitcoin’s ability to reclaim $92,000–$94,000 and the total market cap surpassing $3.1 trillion. Until then, expect continued volatility and defensive positioning in the crypto market.