- Bitcoin has dropped nearly 13% this week, wiping out 2025 gains and triggering widespread panic among retail investors.
- Newer Bitcoin holders executed a massive panic sell of 148,241 coins after prices fell below their purchase costs, realising steep losses.
- Some analysts believe this capitulation could be a necessary reset that transfers coins to stronger hands, potentially establishing a more stable market foundation despite short-term pain.
- Other analysts point to past cycles with corrections of 30% and urging for calm.
Tough times in crypto. Every day seems to bring more news of red candles, and the weekly picture is dreary. Bitcoin’s weekly price dropped almost 13%, Ethereum and XRP fell close to 15%, while Solana even lost 21% week-on-week.
With Bitcoin barely holding on to the US$92k (AU$141.8k) line, some analysts are eyeing further losses while new entrants are selling. Bitcoin’s dip means it has all but wiped out the gains made in 2025. A CryptoQuant note shows that retail-leaning investors dumped a huge amount of BTC once prices slid below their cost basis, locking in steep losses after buying near the top.
The breakdown of the US$100k (AU$154.2k) level appears to have triggered widespread fear among newer holders, prompting a large wave of capitulation. And it wasn’t profit-taking but “a significant loss realised on a monumental scale.”
On November 14, 2025, holders often associated with retail or newer entrants—those with less than 1 million BTC—executed a massive panic sell, distributing a net 148,241 coins.
Crazzyblockk, CryptoQuantCryptoQuant analyst Crazzyblock said that, while painful in the short term, the transfer of coins from shaken sellers to stronger hands could help establish a more durable market foundation.
This capitulation may have been a necessary, if brutal, reset, potentially marking a climactic moment of fear that precedes a more stable period.
Crazzyblockk, CryptoQuantRelated: Saylor’s Strategy Buys Over $800M in Bitcoin as TD Cowen Reaffirms Massive Upside
Others believe there could be more to come. Adam McCarthy, a researcher at analytics firm Kaiko, said that “AI bubble talk” and fears the US Fed may not be lowering rates as quickly as markets had hoped could push BTC down further.
The AI risk is likely compounding and affecting risk sentiment in crypto, and adding that to the chatter from FOMC officials, you’re looking at a sustained downtrend for Bitcoin.
Adam McCarthy, KaikoThis Is Nothing New, Zoom Out, Say Analysts
However, all this may only be short- to medium-term and doesn’t change the overall narrative, at least according to macro guru Raoul Pal. On Crypto Twitter, he reminded his 1.2 million followers that corrections like this are nothing new, pointing to past drawdowns of 30% or more.
Fellow analyst Michaël van de Poppe agreed, saying “the best way is to zoom out and have some chill and patience”, adding that this cycle is not different from past cycles.
This cycle is no different than the previous cycles, the only difference: it’s longer. Patient people will always succeed.
Michaël van de PoppeOf course, there is one significant difference this cycle: institutions have arrived. We’ve only had US spot Bitcoin exchange-traded funds (ETFs) for less than two years now. These funds have amassed 6.3% of all Bitcoin.
Though recently, they have seen large outflows. The past four days alone, IBIT and co. have had net outflows of at least US$1.7 billion (AU$2.6 billion) – with some data still pending.
Related: Japan Moves to Regulate Crypto as Financial Products in Major FSA Overhaul
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