Bitcoin Falls 25%, Erasing All 2025 Gains Amid Market Panic

Bitcoin plunged below $95,000, wiping out every gain it had made in 2025 and marking a dramatic reversal just weeks after reaching a record high above $126,000 in October. On Monday morning, Bitcoin was trading at $94,411—down about 25% from its peak on October 6 and nearing its lowest point in six months. This sharp drop erased roughly $600 billion from Bitcoin’s market cap and pushed the wider crypto market into what analysts now call a confirmed bear regime.

Key Drivers of the Crash:

Federal Reserve Uncertainty: Growing doubts about U.S. monetary policy have stoked risk aversion. The probability of a rate cut at the Fed’s December meeting fell from 96% to just 43%, following a 43-day government shutdown that left policymakers without key economic data.

Institutional Outflows: Institutional investors have led the exodus. U.S. spot Bitcoin ETFs lost $1.11 billion in the week ending November 14, their third consecutive week of outflows. The IBIT fund alone saw $532 million withdrawn, with a single day (November 13) setting a near-record for ETF outflows.

Additional Pressures: The announcement of 100% tariffs on Chinese imports by Donald Trump triggered what analysts described as the largest crypto liquidation event ever, erasing half a trillion dollars from the market. Even as Trump walked back the tariffs, confidence did not recover.

Market Sentiment: The Crypto Fear & Greed Index fell to 17, signaling “extreme fear”—the lowest since April. Analysts cited overlapping pressures: long-term holders taking profits, institutional selling, macro uncertainty, and forced unwinding of leveraged positions.

Remarkable Events:

A dormant Bitcoin whale moved $1.4 billion (12,000 BTC) to an exchange after 13 years of inactivity, triggering further price declines and market speculation.

BlackRock moved $293 million in crypto to Coinbase as Bitcoin briefly broke below $100,000.

Key Takeaway:
Bitcoin’s sharp drop and the wider crypto meltdown are fueled by macroeconomic uncertainty, regulatory developments, and aggressive institutional moves. Traditional and crypto investors alike are bracing for further volatility, with analysts now calling this a deep bear market phase.

Sources:
Yahoo Finance, Newsmax, Economic Times, Perplexity, and others as referenced in the original summary.