Bitcoin Struggles to Regain Lost Ground after Rapid Slide

The dreaded Turkey Drop doesn’t just apply to college relationships: Bitcoin got roasted last month, with yesterday’s price hovering just above a key support level of $84,000. Its latest swing lower comes alongside a Bank of Japan official hinting the country could raise interest rates, a move that tends to make investors wary of riskier assets. 

Crypto’s largest currency by market cap, Bitcoin bottomed out at just above $80,000 on November 21, but investors held the line there. The $80,000 mark is where many institutional investors bought in, so a drop below that could mean massive losses. 

It’s been a dramatic 2025 for bitcoin, which has seen its annual gains erased in a year where it had everything going for it: friendly regulators, big banks and President Trump. 

Fall’s Feeling Very Literal

Bitcoin might have seasonal affective disorder, because it tends to hit a low point in autumn, according to BTIG analysts. It then slowly recovers as it approaches the end of the year, leading BTIG to expect some upside next month. 

Bitcoin has its own seasons, too, and it’s now at the end of a four-year cycle, when it typically sees a correction. Critics have pointed out that this cycle could be a self-fulfilling prophecy. Timing isn’t everything, but when investors think they see a pattern, it can add fuel to the sell-off fire:

• Bitcoin’s price fell from its peak to its bottom for this cycle (at least for now) in a span of 47 days. Similar cycles previously took 77 days and 146 days. That relatively short spike and dip may have compounded fears that contribute to the price moving more erratically. 
• The cycle’s spinning fast partly because of how some investors buy crypto: leveraged positions in which they invest only a small portion of the promised amount. They make huge gains if the market moves their way but owe if it swings the other direction. If they can’t pay up within a limited time, their position is liquidated. Traders are now accelerating bitcoin’s fall with leveraged shorts. 

Vicious Cycle: If there’s one factor driving bitcoin’s price moves, it’s fear. Coinglass’s Crypto Fear & Greed Index fell to 11 last month, its lowest level since the FTX collapse of 2022. And as investors continue to pile into leveraged bets, a little fear goes a long way toward unwinding the crypto sector. At the same time, as seen earlier this year, a little hope can also quickly turn into a full-blown rally.