Bitcoin posts its steepest monthly decline since the 2022 crypto crash

Bitcoin is on track for its steepest monthly decline since mid-2022, a drop reminiscent of the chaos that followed the collapse of several major crypto firms that year.

The world’s largest cryptocurrency slid as much as 6.4% to $81,629 on Friday before clawing back some losses to trade near $84,166 at 7:42 a.m. in London. Ether, the second-largest token, tumbled 7.6% to below $2,700. Bloomberg data shows Bitcoin has fallen roughly 23% in November, its sharpest monthly fall since June 2022.

Parallels to the TerraUSD and FTX Crises

The downturn is stirring memories of the May 2022 implosion of Do Kwon’s TerraUSD stablecoin, which triggered a domino effect of failures across the crypto industry. That period ultimately led to the collapse of Sam Bankman-Fried’s FTX exchange, shaking confidence across global markets.

Even with a crypto-friendly stance from the White House under President Donald Trump and increased institutional involvement, Bitcoin has now pulled back more than 30% from its record high reached in early October.

Liquidations Intensify the Sell-Off

Massive liquidations have accelerated the decline. On October 10, leveraged crypto bets totaling $19 billion were wiped out, helping erase an estimated $1.5 trillion from the overall digital-asset market. The pressure has continued, with CoinGlass reporting another $2 billion in leveraged positions liquidated in the past 24 hours.

Institutional demand is also fading. A group of 12 U.S.-listed Bitcoin ETFs saw $903 million in net outflows on Thursday—their second-largest single-day withdrawal since their debut in January 2024. Meanwhile, open interest in perpetual futures has dropped 35% from its October peak of $94 billion, signaling a sharp retreat in speculative activity.

Broader Market Weakness Weighs on Crypto

Traditional markets have offered little relief. U.S. stocks, which recently surged on optimism around artificial intelligence following strong Nvidia earnings, have since pulled back. Concerns over stretched valuations and uncertainty surrounding a possible Federal Reserve rate cut in December are dampening sentiment.

Market watchers remain wary of how far the current slide might go.

“Sentiment across the board is incredibly poor. There appears to be a forced seller in the market and it is unclear how deep this goes,” said Pratik Kala, portfolio manager at Australian hedge fund Apollo Crypto.

What to Know

As of November 3, Bitcoin traded around $107,500, down 2.2% as investors awaited key U.S. jobs data. Ethereum slipped 3% to roughly $3,750, while other altcoins struggled amid muted trading activity.