Bitcoin Heading for Worst Month Since Crypto Collapse of 2022

Core Insights - Bitcoin is experiencing its worst monthly performance since June 2022, with a decline of about 25% in November, marking significant losses for the cryptocurrency market [1][2] - The total market value of cryptocurrencies has fallen below $3 trillion for the first time since April, indicating a broader downturn in the sector [1][2] - Bitcoin has dropped over 30% since reaching a record high in early October, largely due to forced liquidations and structural selling pressures [3][4] Market Dynamics - The recent market turmoil was exacerbated by a significant liquidation event on October 10, which resulted in $19 billion in leveraged token bets being wiped out, contributing to a loss of approximately $1.5 trillion in total market value [3][4] - Selling pressure has intensified, with an additional $2 billion in leveraged positions liquidated recently, highlighting the vulnerability of the market [4] - A notable crypto wallet, "Owen Gunden," sold $1.3 billion worth of Bitcoin starting in late October, which may have contributed to the downward pressure on prices [7] Broader Economic Context - The performance of US stocks, which had initially rallied due to positive earnings from Nvidia, has also been affected by concerns over high valuations and uncertainty regarding Federal Reserve rate cuts [5] - Overall market sentiment is described as poor, with indications of forced selling and uncertainty about the depth of the current downturn [6]