Bitcoin Rebounds Slightly After Weekend Plunge Wipes Out All 2025 Progress

Quick breakdown

• Bitcoin (BTC) recently dropped below its $93,507 entry point for the year, briefly wiping out all 2025 gains. 
• It hit a low of approximately $93,029, representing a 25% correction from its October all-time high.
• The market downturn was primarily driven by macroeconomic uncertainties as well as profit-taking by Bitcoin “whales” and OG investors.

 

Bitcoin’s recent market downturn and its impact

Bitcoin (BTC) recently experienced a significant correction, dropping below the $93,507 entry point it started the year with, and briefly erasing all the year’s gains despite numerous positive developments across industry and government sectors. The cryptocurrency reached a low of approximately $93,029 on Sunday—down 25% from its October all-time high—before recovering slightly to around $94,209, according to CoinGecko data .​

Source: CoinGecko

This decline highlights a turbulent weekend, where the crypto markets bled amid macroeconomic uncertainties and external shocks. Despite the US government’s reopening after a record 43-day shutdown, investor sentiment remained fragile, triggering sell-offs that impacted Bitcoin and other major altcoins.​

Factors behind the price drop and future outlook

What is happening in crypto?

Over the last 41 days, crypto has erased -$1.1 trillion in market cap, or -$27 billion PER DAY.

Crypto market cap is now ~10% BELOW levels seen during the record -$19 billion liquidation on October 10th.

This is a structural move. Let us explain. pic.twitter.com/5JXKFSCPXV

— The Kobeissi Letter (@KobeissiLetter) November 16, 2025

USD regulatory momentum, especially under the Trump administration’s pro-crypto stance, had initially fueled optimism earlier in the year, promoting corporate treasury adoption and inflows into Bitcoin-focused ETFs. However, factors such as Trump’s tariff wars and the prolonged US government shutdown have spurred multiple double-digit pullbacks, revealing vulnerabilities despite promising industry fundamentals.​

Another factor is how Bitcoin whales and longtime investors are acting. While some have sold parts of their holdings, which some say has slowed the rally, analysts point out that taking profits late in a bull market is a normal and expected practice, and it doesn’t mean investors are giving up. Experts say this is just the usual pressure of selling, not a mass exit by institutions. Another contributing factor is the behaviour of Bitcoin whales and OG investors. 

Additionally, other leading cryptocurrencies, such as Ether (ETH) and Solana (SOL), have seen losses of 7.95% and 28.3%, respectively, since the start of the year, with many altcoins experiencing even steeper declines.​

The Four-Year cycle and future market potential

There’s still debate about Bitcoin’s traditional four-year cycle, with some analysts wondering if it remains valid now that institutional support and regulations have increased. Despite recent setbacks, a number of experts remain hopeful for a big rally in 2026, fueled by the “debasement trade” idea and broader use of stablecoins, tokenization, and DeFi. For example, Bitwise CIO Matt Hougan, who recently highlighted strong fundamentals backing long-term growth, expects a solid year ahead.

This brief downturn highlights the importance of monitoring macroeconomic influences, whale activities, and industry shifts as the crypto market navigates its complex cycle. While short-term volatility persists, many industry insiders believe the fundamental positives remain intact, setting the stage for potential growth in 2026.

 

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