Bitcoin dropped sharply on Monday and fell below €75,000 as the wider crypto market extended its steep decline after October’s record peak.
Cryptocurrencies entered another month in negative territory as Bitcoin lost over 5% in early European trading and slipped under €75,000.
Bitcoin reached about €110,000 in early October before it began a long and steep fall driven by large liquidations and widespread sell-offs.
The price lost more than 16% in November and moved towards €74,000 at one stage.
Ethereum and Solana also lost over 5% on Monday and continued the downward trend that started in October.
Bitcoin showed brief signs of stability last month, yet each rebound faded quickly and prices resumed their fall.
Investors Retreat from Risk
Stocks linked to higher risk also fell in recent weeks as investors adopted cautious strategies and kept inflows to Bitcoin exchange-traded funds low.
An ETF groups assets such as stocks, bonds, commodities, or Bitcoin into one product.
Investors buy a single share to gain exposure to everything the fund holds.
They often sell ETF shares when one or more underlying assets lose value, which pushes the entire ETF lower.
Global uncertainty and weaker economic signals dragged the world’s largest cryptocurrency lower as traders exited riskier positions.
Reduced expectations of near-term rate cuts by central banks like the US Federal Reserve and the Bank of England also pressured Bitcoin.
Experts link the slump partly to aggressive trading methods used by professional investors.
Shifting Expectations for Bitcoin
Many market watchers hoped Bitcoin would act like a safe-haven asset similar to digital gold.
Its volatile behaviour instead shows that it moves more like tech-related stocks.
Nvidia, known for its sought-after GPU chips, surged earlier this year and then experienced similar sharp declines.
