What is happening in the crypto market: investor capitulation, stablecoin growth, and record ETF out

The question "what is happening in the crypto market" has become the number-one topic not only in financial circles but also across all major media outlets. Many are already drawing parallels with the early phases of global financial crises — the reversal of the crypto sector after a period of confident growth was too sharp, and the scale of the decline resembles major stock market crashes.

In November 2025, cryptocurrency prices continued their October decline: Bitcoin fell below $90,000 for the first time in seven months, and many major altcoins lost more than 25% in the past month alone.

Experts have already called November the worst month for Bitcoin since 2022 and are even comparing the situation to the crypto market collapse that followed the infamous FTX exchange crash. After reaching its all-time high (ATH) of $126,200 in early October 2025, the price of the leading cryptocurrency Bitcoin (BTC) plunged more than 31%, dropping to $86,650. What is happening in the crypto market now, and what do analysts expect in the near future?

The crypto market capitalization lost $1.3 trillion

The total cryptocurrency market capitalization fell below $3 trillion for the first time since April 2025, losing more than 40% in just the past 60 days. During this period, the total market cap dropped from $4.28 trillion to $2.98 trillion.

Bitcoin alone lost more than one-third of its market capitalization, which shrank by 44% in less than two months — from $2.48 trillion to $1.72 trillion. Despite the decline in October–November 2025, Bitcoin remained among the world's top 10 assets by market capitalization, slightly behind Broadcom (AVGO) stock.

At the same time, not only did Bitcoin's market cap drop, but its dominance (Bitcoin Dominance) also decreased. Since July 2025, this indicator has fallen by nearly 12% — from 63.8% to 57%.

Altcoins performed even worse. Ethereum (ETH), the leading altcoin, lost more than half its value after hitting an ATH of $4,953 in August, dropping to $2,903. ETH market capitalization during this period fell from $583 billion to $350 billion. XRP (XRP) lost nearly 28% over the past 90 days, while BNB (BNB) and Solana (SOL) dropped 27% and 32%, respectively.

Against the backdrop of declining volatile cryptocurrencies, the total stablecoin market capitalization is growing — in November, it surpassed $300 billion for the first time. The market cap of the largest stablecoin, Tether (USDT), exceeded $184 billion, reaching a new all-time high.

Analysts emphasize that the growth of stablecoins is a direct indicator of what is happening in the crypto market: investors are actively locking in losses and moving into more stable assets to avoid further risk.

The Fear & Greed Index fell to 10 points in November, indicating "extreme fear." This is the lowest reading observed by CoinMarketCap since June 2023, though by the end of the month, the index recovered slightly to 15 points.

Among the reasons for what is happening in the crypto market right now, experts cite macroeconomic pressure linked to disappointing U.S. inflation and unemployment data, as well as anticipation of the FOMC* minutes and comments from Federal Reserve (Fed) officials.

* FOMC (Federal Open Market Committee) — the key policymaking body of the U.S. Federal Reserve that determines monetary policy, including interest rates and liquidity regulation.

According to analysts, one of the main factors behind the crypto market's October–November 2025 decline was concern about a potential tightening of Fed monetary policy, despite a 25-basis-point rate cut in September that temporarily boosted investor sentiment and drove digital asset prices higher.

Recent U.S. labor market data and disagreements among Fed officials, combined with a strengthening dollar, reduce the likelihood of further rate cuts. Rising uncertainty around Fed policy is pushing investors away from high-risk assets such as stocks and cryptocurrencies, creating selling pressure. Experts believe the stronger dollar is currently more attractive than highly volatile cryptocurrencies like Bitcoin and altcoins.

Analysts also note that the technology sector — including artificial intelligence (AI) companies — appears "overheated." This further exacerbates the situation in the crypto market amid growing doubts about the Fed's possible monetary easing.

What is happening in the crypto market with ETFs?

In late November 2025, exchange-traded funds (ETFs)* based on leading cryptocurrencies recorded record outflows. On November 20 alone, net outflows from Bitcoin ETFs and Ethereum ETFs totaled $1.14 billion — one of the worst daily results since the launch of crypto funds.

* ETF (Exchange-Traded Fund) — an exchange-traded investment fund whose shares trade like regular stocks. In the case of crypto ETFs, the fund holds a portfolio of digital assets (e.g., Bitcoin or Ethereum), while investors buy and sell shares without directly owning the cryptocurrency.

Throughout November, ETF outflows continued, exceeding $5.15 billion over the past month. Investors withdrew around $3.5 billion from Bitcoin ETFs and more than $1.5 billion from Ethereum funds. According to analytics platforms, November was the worst month for crypto ETFs in their entire history and the first loss-making month since January 2025.

The current ETF trend indicates institutional capital leaving digital assets, further worsening liquidity problems in the crypto market. This has become another reason for what is happening in the crypto market right now.

Will the pressure on the crypto market persist?

Despite what is happening in the crypto market, analysts maintain a long-term optimistic outlook. In its latest report, JPMorgan raised its long-term Bitcoin forecast from $170,000 to $240,000. Experts believe the key driver of future Bitcoin growth will be institutional inflows replacing retail speculation.

Analysts note that Bitcoin failed to hold a key support level at $87,000 and do not rule out further declines. Among the conditions for a market recovery, they list renewed liquidity inflows and a rebound in crypto ETF investments.

Additional pressure on the crypto market may come from upcoming Fed data, expected in early December. If U.S. economic data disappoints, the Fed may decide not to cut interest rates, which would add further downward pressure on crypto assets.

Pressure on the crypto market could also intensify if U.S. President Donald Trump imposes new 100% import tariffs on Chinese goods — a measure he mentioned again in October. His previous statement triggered a crypto market crash dubbed "Black Saturday" and became one of the reasons behind what is happening in the crypto market now.

At the moment, Trump has postponed tariff implementation — just as he did in April 2025. Future decisions regarding tariffs remain unclear, but if they are eventually introduced, crypto market recovery may take much longer.