Bitcoin Tumbles Deeper Into Bear Territory, Hard-Won Rally Could Be On Verge Of Vanishing

November 17, 2025

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Bitcoin (CRYPTO: BTC) has descended further into a bear market. The digital token’s price has seen a 22% drop from its peak in early October. The sell-off of Bitcoin intensified this week, with the cryptocurrency hitting a six-month low of $94,700 on Friday.

Three primary factors have contributed to this sell-off. First, Bitcoin has been impacted by a wider sell-off in risk assets, especially tech stocks, as investors express concerns over high valuations.

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On Thursday, outflows from spot bitcoin ETFs reached $866.7 million, the highest since early August, according to CoinGlass data.

Second, over the past month, Bitcoin’s liquidity has dwindled, leading to heightened price volatility. The market depth of Bitcoin, a metric that gauges price resistance to volatility from large trades, fell from roughly $766 million in early October to $535.2 million this week, as stated by crypto analytics firm Kaiko.

Finally, speculation that Strategy, the largest corporate holder of Bitcoin, had offloaded some of its Bitcoin holdings, spurred the sell-off.

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However, Michael Saylor, Strategy’s founder, refuted these rumors, asserting that the company was actually purchasing more Bitcoin.

Despite Saylor’s assurances, the market continues to be wary, as Strategy’s net asset value premium dipped below 1x this week, suggesting that its premium over the value of its Bitcoin holdings has been temporarily wiped out.

Why It Matters: The current state of Bitcoin is a reflection of the broader market sentiment towards risk assets. The fear of high valuations, coupled with decreased liquidity and market rumors, has led to an increased sell-off.

This situation underscores the volatile nature of cryptocurrencies and the influence of market sentiment on their value. As the market continues to monitor Strategy’s moves closely, the future of Bitcoin remains uncertain.

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This article Bitcoin Tumbles Deeper Into Bear Territory, Hard-Won Rally Could Be On Verge Of Vanishing originally appeared on Benzinga.com

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