Bitcoin has taken a major hit, dropping more than 35% from its recent high in October. This crash happened alongside a bigger pullback in risky assets, including sharp declines in major stock markets.

In the days before November 22nd, the sell-off got even worse. Bitcoin (BTC) fell to its lowest price since April, briefly trading around $80,600. That wiped out all of its gains for 2025 so far. The total value of the entire crypto market dropped by over $1.2 trillion in just six weeks. Many experts say this was a massive reset or “deleveraging” event, where investors quickly pulled out their money to reduce risk.

Several big-picture economic issues helped trigger the drop. One major factor was uncertainty about whether the U.S. Federal Reserve would cut interest rates in December. Many investors now think the Fed might keep rates high, which makes borrowing more expensive and reduces the amount of money flowing into risky assets like cryptocurrencies.

At the same time, investors also started worrying about tech stocks, especially in the Artificial Intelligence (AI) sector. Crypto prices have recently been moving in sync with AI-related stocks, so when those stocks started falling, crypto got hit hard too. That led to a broader “risk-off” mood in the market, where people moved away from risky investments and sold off heavily leveraged crypto positions.

Even with all this negative action, some long-term crypto investors are staying calm. Data from the blockchain shows that large holders like corporate treasuries and institutional funds aren’t panicking. In fact, some are still buying more Bitcoin. Companies like Strategy have even announced new Bitcoin purchases, using money raised from debt or stock offerings. This shows a clear difference between short-term traders selling based on fear and long-term believers who continue to accumulate Bitcoin for the future.

Keywords: Bitcoin price drop, crypto market crash, macroeconomic factors, Federal Reserve interest rate, AI stock correlation, risk-off sentiment, institutional Bitcoin holders, long-term accumulation, leveraged crypto positions, market correction.