As of the morning of November 25 (Vietnam time), the price of this currency is fluctuating around the mark of 89,000 USD for 1 bitcoin, down about 29% compared to the historical peak of more than 126,000 USD set in October.
The sell-off has spread across the digital asset market, with the total market capitalization falling more than 30% from $4.28 trillion on October 6 to $2.99 trillion as of November 24. Other major coins such as ethereum and solana have also fallen 38% and more than 40%, respectively, over the same period.
As investors and strategists analyze this month's cryptocurrency market decline, three key challenges for bitcoin have become clear.
ETF capital flows reverse strongly
The first challenge is the massive outflow of capital from bitcoin exchange-traded funds (ETFs). In November, outflows from these funds reached $3.5 billion, the highest level since February.
Sharing his opinion on this issue, Mr. Markus Thielen, founder and CEO of market research firm 10X Research, said that this development indicates that institutional investors have stopped allocating capital to bitcoin. ETFs have turned to short positions and as long as they continue to sell, the market will struggle to sustain or recover.
Real money leaving the market
The second issue is the delay in issuing stablecoins (cryptocurrencies whose value is pegged to assets like the US dollar or gold). These are often the safe havens of the crypto market, so their market capitalizations tend to increase during volatile periods. This happened after the historic sell-off in the crypto market in October. However, this trend is reversing.
According to data from 10X Research, about $800 million flowed out of the crypto market and back into fiat last week. Data from the DeFiLlama platform also showed that as of November 1, the total market capitalization of stablecoins had "evaporated" $4.6 billion.
Mr. Thielen emphasized the fact that money is not only not flowing into but is leaving the cryptocurrency market. That is why bitcoin has not been able to recover.
While recent comments about the possibility of a December rate cut by the Federal Reserve helped lift the market on November 24, Mr. Thielen said the rally would soon fade, warning that it was a short-term reaction to oversold conditions, rather than the start of a sustained V-shaped recovery.
Selling pressure from long-term holders and businesses
The third challenge comes from long-term investors selling during the price decline, possibly in preparation for bitcoin’s four-yearly supply reduction cycle (known as “halving”). The cryptocurrency’s past peak-to-trough performance has largely followed those corrections, but many investors now deny the possibility of a similar cycle repeating itself.
Nicolai Søndergaard, an analyst at blockchain firm Nansen, explains that in every cycle, there are veteran investors who sell. They simply see the time has come to realize profits for other purposes.
According to Mr. Søndergaard, besides the possibility of the Fed cutting interest rates next month, the best chance for the crypto market to reverse will depend on ETF inflows or buying moves from businesses.
However, the wave of listed companies increasing their purchases of bitcoin - led by AI-integrated enterprise software company Strategy - has cooled significantly. Strategy did not announce any new purchases on November 24 after six consecutive weeks of buying. Meanwhile, shares of bitcoin mining companies such as IREN, Riot and Mara Holdings also fell more than 30%.
The cryptocurrency market is going through a difficult period towards the end of the year. If the above problems are not effectively resolved, the road to regaining the old peak of Bitcoin will be very thorny.
Source: https://baotintuc.vn/thi-truong-tien-te/ba-rao-can-lon-ngan-da-phuc-hoi-cua-bitcoin-20251125105022397.htm
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