Bitcoin Sees 20% Decline With Stablecoins Losing $2B Market Cap

TLDR

Table of Contents

Bitcoin fell from $110,000 to $91,000, hitting $82,600 on November 21.
Stablecoin market cap dropped by $2B, the biggest fall since November 2022.
17% of Bitcoin is now held by governments and companies globally.
Inflation slowed in 17 G20 countries, supporting crypto adoption in others.

November brought sharp declines across the crypto market, with Bitcoin plunging over 20% and stablecoins losing $2 billion in market capitalization. Investor concerns over possible U.S. interest rate cuts and warnings of a tech bubble triggered widespread sell-offs. At the same time, inflation slowed in major economies, and global regulators moved to reshape crypto taxation. The shift in market dynamics reflects growing institutional involvement and evolving regulatory landscapes.

Bitcoin Price Falls Sharply Amid Market Uncertainty

Bitcoin’s price decreased by more than 20% in November, dropping from $110,000 to $91,000. The lowest price for the month was recorded on November 21, when Bitcoin touched $82,600. This marked the steepest monthly decline in 2025 and the first time since May that Bitcoin traded below $100,000.

According to Deutsche Bank analysts, this market decline was different from previous cycles. “Unlike prior crashes, driven primarily by retail speculation, this year’s downturn has occurred amid substantial institutional participation, policy developments, and global macro trends,” the bank reported. A technical indicator known as the “death cross” occurred on November 15, when the 50-day simple moving average crossed below the 200-day average.

Investor concerns about interest rate cuts by the US Federal Reserve and worries surrounding a potential financial bubble in the AI industry further pressured the market.

Stablecoin Market Shrinks After 26 Months of Growth

After more than two years of steady expansion, stablecoin markets saw a reversal. The total market capitalization of stablecoins dropped by $2 billion in November. This was the steepest decline since the FTX collapse in November 2022.

Tether’s USDT gained dominance, rising by nearly 0.5%, while Ethena’s USDe fell by 26.8%. The total value locked in Ethena fell as traders left looping strategies. BitGet reported that growing concerns over stablecoin safety and tighter regulatory scrutiny affected market sentiment and trading activity.

Institutional Bitcoin Holdings Reach 17 Percent

At the end of November, companies and governments held 17% of Bitcoin’s total supply. This shift is driven by growing participation through exchange-traded products and treasury holdings. Over 7% of the total Bitcoin supply is now managed through exchange-traded funds.

BitcoinTreasuries.net reported that 357 companies had added Bitcoin to their balance sheets by November’s end. Inspired by MicroStrategy’s strategy, many firms are now acquiring Bitcoin as a reserve asset. Nicolai Søndergaard of crypto research firm Nansen said: “It doesn’t change Bitcoin’s fundamental properties. The network remains decentralized even if custody becomes more centralized.”

Inflation Slows in G20 as Crypto Regulation Advances

Inflation decreased in 17 out of the 20 G20 nations in November. This global slowdown came amid easing energy prices and stabilized supply chains. While lower inflation can reduce crypto’s appeal in some countries, high-inflation regions continue to adopt digital assets.

In Bolivia, the government allowed banks to offer crypto custody and approved the use of cryptocurrencies in savings accounts. Stablecoins such as Tether’s USDT have gained popularity in the country. Shops in Bolivia have begun listing prices in USDT.

Meanwhile, tax authorities in seven countries reviewed or proposed changes to their crypto tax rules. In the United States, the White House is reviewing a proposal that would allow the IRS to access crypto accounts held overseas. Spain proposed a 47% top tax rate on crypto profits. Japan is considering reducing its crypto tax rate from 50% to 20%, while Switzerland has delayed reforms until 2027.

France and the United Kingdom also reviewed crypto tax reporting frameworks. France may introduce a tax on idle crypto holdings, while the UK is working to simplify reporting for decentralized finance users.