Crypto carnage wipes out $1.25 trillion mcap; Bitcoin tanks over 20% in November

Crypto market has been witnessing a sharp downturn lately. The month of November has triggered a sharp correction in the digital asset market, which saw its all-time peak in less than two months earlier. However, the recent crypto carnage is not unusual as crypto tokens, particularly Bitcoin has seen several corrections of 30 per cent or more in yesteryears too.

Bitcoin has tumbled more than 20 per cent in November itself to $86,860, while the leading crypto token has seen a correction of nearly 32 per cent from its all time high at $126,198.07 hit on October 07, 2025. The sharp carnage has wiped out nearly $1.25 trillion value from crypto mcap from its peak around $4.28 trillion in October to $3.01 trillion as of November 26, 2025.

The total crypto market has seen close to a 30 per cent correction since its peak of $4.28 trillion in October. Liquidity constraints are driving the current weakness in the market, said -Edul Patel, CEO of Mudrex.

"Factors like ETF outflows, short-term holder selling, and government shutdown have created headwinds for the market. Despite the ongoing correction, the total crypto market is still 24.7 per cent up from the April lows. Looking ahead, quantitative easing and the fed rate cut could help change the market direction," he said.

One can not ascertain if the worst for the crypto is over or not. The current fall is seen as a deep correction in the longer bull cycle. According to the market experts, correction in the AI stocks, the delay in rate cuts by the Fed and the temporary liquidity outflow may have affected this riskier asset class.

The crypto market has endured a sharp downturn, with Bitcoin sliding to a seven-month low as broader digital-asset values tumbled by over $1 trillion. This collapse reflects mounting macroeconomic pressures, including higher interest rates and regulatory uncertainty, which have pushed investors toward safer assets, said Sathvik Vishwanath, Co-founder & CEO at Unocoin.

"Reduced liquidity and widespread unwinding of leveraged positions intensified the sell-off, triggering rapid price cascades across major tokens. Bitcoin’s decline is particularly significant because it serves as a barometer for overall market confidence. The speed and scale of the downturn highlight the sector’s sensitivity to shifting sentiment and the fragility of its speculative foundations," he said.

To recall, Robert Kiyosaki, the author of 'Rich Dad, Poor Dad' and financial educator, revealed that he recently liquidated $2.25 million worth of Bitcoin for roughly $90,000 per coin, which he bought at $6,000 apeice years ago. However, he continued to remain positive on Bitcoin in the longer run.

Kiyosaki said that the move reflects his long-standing philosophy of converting speculative gains into assets that generate consistent cash flow. His disclosure comes at a time when the crypto market is reeling from a sharp downturn and after reports that Bitcoin whale Owen Gunden offloaded nearly his entire $1.3 billion BTC holdings.