Bitcoin Plunges 25% from Record Highs, Sparking Debate on Market Cycle

As of November 17th, 2025, Bitcoin (BTC-USD) has experienced a significant decline, falling below $94,000 and losing around 25% of its value from the record highs reached in October. This drop has prompted discussions about whether the cryptocurrency is undergoing a temporary correction or the beginning of another four-year cycle that could lead to a more prolonged sell-off.

The recent sell-off was exacerbated by the liquidation of $19 billion in leveraged positions last month, as well as long-term holders taking profits. However, analysts at Bernstein believe the current market environment does not indicate a cycle peak, but rather a structural, multi-year trend of increasing institutional participation in the Bitcoin and crypto capital markets, with occasional corrections along the way.

The analysts note that the growth in ETF adoption by institutional investors reflects "higher quality and consistent ownership" of Bitcoin, while the Trump administration's support for the cryptocurrency and the Clarity Act legislation in Congress represent positive drivers. Additionally, MicroStrategy's continued buying of Bitcoin offers some level of support for the market.

While the analysts acknowledge that the Fed's more hawkish tone in recent days has "tilted the macro balance, leaving the market increasingly fragile," they believe the current market weakness may provide an attractive entry point for new investors, with the potential for Bitcoin to bottom close to the $80,000 range seen immediately after the 2024 Trump election.