Bitcoin, the world’s biggest cryptocurrency, is going through a rough patch. After reaching a record high of over $126,000 just last month in October, Bitcoin’s price has now dropped by nearly 28%. On November 18, it briefly dipped below $90,000 before bouncing back slightly to around $91,000 on November 19. This drop has erased all of Bitcoin’s gains for 2025 and is causing ripple effects across the entire crypto market.

Other major cryptocurrencies are also feeling the heat. Ethereum has fallen 21% so far this year, and Solana is down by 26%. The broader crypto market is under pressure due to a mix of economic uncertainty and changing investor sentiment.

In October, Bitcoin surged thanks to strong interest from big investors and expectations that the U.S. Federal Reserve might cut interest rates. Many investors viewed Bitcoin as a safe asset during uncertain times, especially with concerns around the U.S. government shutdown and global tensions. But now, those expectations are fading.

Ashish Singhal, co-founder of CoinSwitch, explained that the main reason for the recent drop is that people no longer expect the Fed to cut interest rates soon. When interest rate cuts seem unlikely, investors become more cautious and take fewer risks. This cautious mood is spreading from the stock market—especially tech and AI stocks—into cryptocurrencies. On top of that, large investors who made big profits during Bitcoin’s recent rise are now selling to cash out, which adds more supply and puts even more pressure on prices.

U.S.-based Bitcoin ETFs (exchange-traded funds) have seen over $1 billion in outflows this month. Ethereum ETFs are also seeing money pulled out. These outflows show that many investors are stepping back from the crypto market for now.

While the Federal Reserve did cut interest rates by 25 basis points in October, there’s growing uncertainty about whether there will be another rate cut in December. Some experts think the Fed should lower rates again to support a slowing job market, while others believe rates should stay high to keep inflation under control.

Although Bitcoin bounced back slightly after dipping under $90,000, experts don’t expect any major gains in the near future. Singhal believes the market will likely remain stable rather than see any dramatic moves upward soon. He also pointed out that $90,000 is an important psychological support level for Bitcoin. Investors should pay close attention to signs from the Federal Reserve and how large investors are reacting.

This isn’t the first time Bitcoin has seen such a big drop. Historically, it’s had several sharp declines only to bounce back stronger. In fact, even with this recent slump, Bitcoin is still trading well above where it was before Donald Trump became U.S. President.

Raj Karkara, COO of ZebPay, said that these types of corrections are normal after a strong rally. When prices go up fast, many investors take profits—especially during uncertain times. ETF withdrawals and low trading volumes don’t mean people have lost faith in crypto; they often signal caution. These dips can actually set the stage for more sustainable growth later on.

Bitcoin still has its core strengths—such as limited supply and growing interest from institutions—which many believe will support its long-term value. While gold continues to be seen as a traditional safe haven (and is up 60% this year), many crypto supporters still think Bitcoin could eventually become a digital alternative to gold.

Now, all eyes are on whether Bitcoin can hold its ground at $90,000 and when it might start climbing again.