Bitcoin Heading for Worst Month Since Crypto Collapse of 2022

Bitcoin is on track for its worst month since mid‑2022, sliding as much as 6.4% to $81,629 (trading around $84,166 in London) and down roughly 23% in November, while ether fell as much as 7.6% below $2,700; bitcoin is more than 30% off its early‑October peak. The rout follows a massive liquidation event on Oct. 10 that wiped out $19 billion in leveraged token bets and about $1.5 trillion of crypto market value, with another $2 billion of leveraged positions liquidated in the past 24 hours; institutional demand has cooled, as 12 US‑listed bitcoin ETFs posted $903 million of net outflows on Thursday and perpetual futures open interest has dropped about 35% from an October high of $94 billion. With risk appetite sagging—US equities surrendering AI‑driven gains amid doubt over a Fed rate cut—market participants warn of forced selling and potential margin‑call pressure on large leveraged holders (analysts pointed to Michael Saylor’s firm), a dynamic that could amplify downside if it continues.

Analysis

Bitcoin is on track for its worst monthly performance since mid-2022, sliding as much as 6.4% to $81,629 and trading around $84,166 in London; it has lost about 23% in November and is more than 30% below its early‑October record high. Ether fell as much as 7.6% to below $2,700, indicating broad weakness across major crypto assets rather than an isolated BTC correction.

The selloff follows a massive liquidation event on Oct. 10 that wiped out $19 billion in leveraged token bets and roughly $1.5 trillion of crypto market value, with another $2 billion of leveraged positions liquidated in the past 24 hours. Institutional demand has cooled: 12 US‑listed bitcoin ETFs recorded $903 million of net outflows on Thursday (their second‑largest single‑day redemption since January 2024), while perpetual futures open interest has fallen about 35% from an October peak of $94 billion.

Market participants flag forced selling and margin‑call risk as proximate drivers, with portfolio managers and analysts warning of opaque sellers and a potential test of Strategy Inc.’s pain threshold; Strategy Inc. shares closed 5% lower on Thursday. Correlated weakness in US equities amid doubts over a December Fed rate cut reduces buyer depth, increasing the probability of further near‑term downside until ETF flows and futures positioning stabilize.

Key Decisions for Investors

• Reduce or eliminate leveraged crypto exposure and avoid initiating new margin positions until ETF flows and perpetual futures open interest show sustained stabilization
• Implement downside protection on material BTC/ETH holdings via short‑dated puts or inverse instruments, or trim positions to limit exposure to forced‑sale events
• Monitor daily ETF flows, futures open interest and liquidation metrics as leading risk signals and tie position sizing or stop‑losses to spikes in outflows or liquidations
• Watch margin‑call risk at large leveraged holders (Strategy Inc./MSTR referenced in the article) and reduce correlated equity exposure if their share prices approach break‑even levels that could trigger cascade selling