Crypto Market Pulse November 2025
The crypto market experienced a historic drawdown in November 2025, with total market cap falling sharply on the back of macro uncertainty, hawkish Federal Reserve rhetoric and cascading liquidations in crypto-backed leverage structures. BTC and ETH both underperformed, while extreme fear readings failed to trigger meaningful dip-buying, underscoring fragile sentiment. At the same time, spot ETF flows diverged: BTC and ETH products saw heavy redemptions, whereas SOL and new higher‑beta, yield-focused ETFs continued to attract inflows, highlighting a rotation within crypto risk. Looking ahead, market direction hinges on the December FOMC and the evolving role of U.S. macro and regulation as core anchors for the asset class.
Market Performance Overview – Historic Crash Driven by Structural Deleveraging
The crypto market witnessed a historic crash in November 2025, with the total market cap plummeting from $3.7T on Oct 31 to a monthly low of $3.0T, erasing approximately $810bn in value. This sharp downturn was primarily driven by (i) heightened macroeconomic uncertainty during the US government data blackout period, (ii) hawkish Fed rhetoric that dashed December rate cut expectations, and (iii) cascading liquidations in crypto-backed lending positions that amplified selling pressure. Although a technical rebound emerged towards month-end (market cap of $3.2T as of end-Nov, 2025), facilitated by easing selling pressure and tentative dip-buying from opportunistic investors, the recovery remained fragile.
Figure 1. Crypto Market Cap
Source: Coingecko, MicroBit, as of 1 Dec, 2025
The November market downturn exhibited distinct characteristics from previous crypto crashes. Unlike historical patterns where BTC demonstrated relative resilience while altcoins experienced severe declines, BTC underwent a flash crash this time, with its dominant rate dropping to 57.0%. c.17.7% price fall of BTC from early-month erased its YTD gains, suggesting a structural deleveraging centered on BTC potentially driven by long-term selling from OGs. ETH also underperformed slightly with a c.21.3% decline from $3,800 at end-Oct. This convergence of weakness across major crypto assets indicates a market-wide reassessment of risk exposures.
Figure 2. BTC Dominance Chart
Source: Coingecko, MicroBit, as of 1 Dec, 2025
Figure 3. BTC Monthly Return
Source: Coinglass, MicroBit, as of 30 Nov, 2025
Figure 4. BTC Price Change
Source: Coingecko, MicroBit, as of 30 Nov, 2025
Figure 5. ETH Price Change
Source: Coingecko, MicroBit, as of 30 Nov, 2025
Market Sentiment - Extreme Fear Fails to Trigger Accumulation
In November 2025, the Crypto Fear & Greed Index plunged into extreme fear territory, mainly fluctuating between 10-20 and hitting a monthly low of 10 as BTC's price continued to decline. This sentiment reflected severely weakened investor confidence, with liquidity concerns further amplifying price volatility. The market entered a fragile state due to the combined effect of forced liquidations and structural selling from ETF outflows. Although the extreme fear reading historically suggests a potential buying opportunity, investors appeared reluctant to accumulate positions at discounted levels, indicating a deeper crisis of confidence in the near-term market outlook.
Figure 6. Crypto Fear & Greed Index in 2025
Source: Coinglass, MicroBit, as of 30 Nov, 2025
ETF Dynamics - Diverging Flows and Product Innovation amid Market Stress
In November 2025, BTC spot ETFs witnessed sustained outflows against a backdrop of extreme market fear, with total redemptions reaching approximately $3.5bn, approaching record levels and highlighting significant investor withdrawal. Similarly, ETH ETFs faced unprecedented outflows totaling $1.4bn. The combination of price retracement and passive redemptions erased most floating profits gained by later entrants this year, briefly pushing some positions negative.
In contrast, Solana spot ETFs continued to record net inflows throughout the month in the global market. Beyond new SOL and XRP spot ETFs launches, November also introduced high-yield ETFs, which employ strategies ranging from leverage and options utilization to alternative staking mechanisms that improve liquidity while maintaining yield generation. This product expansion beyond core coins into higher-beta alternatives reflects growing institutional demand for sophisticated yield strategies and customized risk exposure, accelerating crypto's integration with traditional finance.
Figure 7. BTC Spot ETF Net Inflow
Source: Coinglass, MicroBit, as of 1 Dec, 2025
Future Outlook
In the near term, BTC continues to trade with heightened volatility amid the downward trend, reflecting cautious sentiment and subdued capital participation. Market participants remain on the sidelines awaiting clearer signals, particularly from the upcoming December FOMC meeting. The Fed’s guidance on interest rates and macroeconomics is expected to play a critical role in stabilizing sentiment and directing the next phase of crypto market movement.
Over the longer horizon, the growing incorporation of BTC and ETH into U.S. ETF markets coupled with their recognition as strategic reserve assets has increasingly anchored these core cryptocurrencies to U.S. economic fundamentals and policy dynamics. Looking ahead, the trajectory of crypto markets will likely be shaped by U.S. economic performance and the continued maturation of the legal and regulatory framework. As institutional participation deepens and compliance mechanisms improve, the market is poised for greater stability and structural maturity.
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