Bitcoin Market Selloff Analysis Report (November 17, 2025)

On November 17, 2025, Bloomberg reported that Bitcoin’s total market value had plunged by approximately $600 billion from its October 2025 peak, with no clear single trigger identified for the selloff. The cryptocurrency, which topped $126,000 in October, experienced a rapid decline to near $95,000 by mid-November, meeting the technical definition of a bear market (20%+ drop from recent highs) [1][3]. The selloff occurred amid broader market uncertainty, including growing hawkish signals from the U.S. Federal Reserve [4].

• Bitcoin Price
  : The cryptocurrency declined ~25% from its early October peak to below $95,000 by November 17, marking a significant reversal of the prior rally [3].
• Crypto-Related Stocks
  : Companies with direct Bitcoin exposure (e.g., MicroStrategy, Coinbase, Marathon Digital) faced downward pressure, correlating with Bitcoin’s price drop [3][5].
• Market Sentiment
  : Fear deepened among investors, as reflected in increased trading volumes during the decline (e.g., Bitcoin volume spiked to 131.3k on November 14, indicating heightened selling pressure) [2].

• Macro Factors
  : The Federal Reserve’s shift to a more hawkish stance likely contributed to reduced risk appetite for volatile assets like Bitcoin [4].
• Technical Signals
  : The 25% drop confirmed a bear market, potentially leading to further short-term volatility as investors reassess positions [3].

• Directly Impacted
  : Bitcoin (BTC)
• Related Stocks
  :
  • MicroStrategy (MSTR): Largest public holder of Bitcoin
  • Coinbase (COIN): Leading crypto exchange
  • Marathon Digital (MARA): Bitcoin mining company
  • Riot Blockchain (RIOT): Crypto mining firm [5][3]
• Sectors
  : Crypto mining, blockchain technology, digital asset exchanges

• Exact Trigger
  : While no clear catalyst was identified, further investigation into macroeconomic data (e.g., Fed rate hike expectations) and regulatory news may reveal contributing factors [1][4].
• Long-Term Trend
  : Need to assess whether this selloff is a temporary correction or the start of a prolonged bear market.

• Macro View
  : Hawkish Fed policy is reducing demand for risk assets, including Bitcoin [4].
• Crypto-Specific View
  : Profit-taking after October’s rally and technical selling (stop-loss triggers) likely amplified the decline [3].

• Federal Reserve policy announcements
• Bitcoin’s support levels (e.g., $90,000 threshold)
• Regulatory developments for crypto-related companies
• Trading volume trends to gauge selling pressure [3][4]

• Volatility Risk
  : Users should be aware that Bitcoin’s ~25% drop from its peak indicates extreme volatility, which may continue amid macroeconomic uncertainty [3].
• Correlation Risk
  : This development raises concerns about the strong correlation between Bitcoin and crypto-related stocks—further declines in Bitcoin could lead to additional losses for these equities [5].
• Macro Risk
  : Historical patterns suggest that hawkish Fed policy typically leads to reduced demand for high-risk assets like cryptocurrencies, which users should factor into their analysis [4].

Disclaimer: This analysis is for informational purposes only and does not constitute investment advice. Cryptocurrency markets are highly volatile and subject to significant risk.