Why Has the Crypto Market Been Falling and When Will It Go Up? AllinCrypto November 19, 2025
Many analysts believe that the recent downtrend in the crypto market is tied to a broader wave of risk aversion sweeping through global markets.
US stocks have entered a period of heightened volatility, with the S&P 500 experiencing its longest losing streak since August and the Nasdaq losing more than $2.6 trillion in value.
Investors are nervous about tech valuations for AI and tech stocks, with added uncertainty around FED rate cuts. Although 20% declines are normal for Bitcoin, could this time really be different?
Macro Forces May be Contributing to the Downturn
Over the last 3 months, Bitcoin has fallen 19.5% and fallen below $90,000 for the first time in many months. Since the beginning of 2025, all of Bitcoin’s gains would be erased if BTC is unable to overcome its current trend before the end of the year.
The October 10 flash liquidated 1.6 million traders, triggering $20 billion in liquidations. It was the largest liquidation event in crypto history and may have been brought on by US–China trade tensions and over-leveraged traders.
Many have blamed crypto exchanges such as Binance for giving traders the ability to over-leverage without proper precautions.
Since the liquidation event, order books have been thinner than usual, making Bitcoin more vulnerable to sharp drops in price.
Long-term holders have also taken the opportunity to lock in profits after Bitcoin’s rally that has taken place for most of the year.
Uncertainty around monetary policy also remains one of the biggest drivers of volatility for crypto. Investors are unsure whether the Federal Reserve will cut rates soon, and higher-for-longer interest rates can reduce liquidity in markets and lower enthusiasm for speculative assets like crypto and Bitcoin.
Meanwhile, traditional safe-haven assets like gold have rallied more than 50% this year, potentially pulling capital away from volatile assets like Bitcoin despite its digital gold trademark.
Altcoins Can Benefit From Institutional Inflows
Despite all the uneasy news, altcoin ETFs have been launched with hundreds more set to arrive towards the end of the year and in 2026. Hedera HBAR, Litecoin LTC, and Solana gained new Spot ETFs from Canary Capital.
Ripple’s XRP token also received a new ETF from Canary Capital to match its existing spot offering from Rex Shares. Altcoin ETFs have pulled multi-million dollar inflows, with XRP and Solana bringing some of the highest altcoin ETF inflows to date.
Alexander Blume CEO of Two Prime, said during an interview that institutional investors are not panicking during Bitcoin’s pullback and are actually looking for more entries. Retail investors are being replaced by institutional holders who are entering crypto for the long haul, whether Bitcoin goes up or down in the short term.
Signs That a Rebound Could Be Near for Crypto
Despite the recent drop, multiple indicators suggest that the crypto market may be setting up for a recovery. Fundstrat’s Tom Lee believes Ethereum is still within a supercycle and that a bottom for the crypto market will arrive very soon, possibly within November.
Historically, Bitcoin has experienced deep pullbacks within broader bull cycles. Earlier this year, BTC fell to around $74k before surging to its $126k all-time high.
Sentiment-driven declines often reverse once markets digest macro concerns, and several structural tailwinds remain firmly in place. Institutional adoption continues to expand, regulatory frameworks such as the GENIUS Act are accelerating adoption, and pro-crypto leadership at key agencies is supporting growth.
Bitcoin ETFs have witnessed billions in inflows year-to-date, with altcoin ETFs set to gain from new spot products. Insitotnal players are confident in the markets.
Historically, periods of extreme fear have preceded some of Bitcoin’s strongest rallies. With key long-term drivers still intact and the broader financial environment poised to stabilize, the market may be preparing for its next move upward.
The post Why Has the Crypto Market Been Falling and When Will It Go Up? first appeared on AllinCrypto.
