In November 2025, the cryptocurrency market experienced a significant decline: the total market capitalization decreased by 15.43%, marking the second consecutive month of decline and signaling a deeper correction following the early growth of the year.
This is reported by Business • Media
Reasons for the Decline and Asset Behavior
According to Binance Research, Bitcoin’s share of the total capitalization decreased to 58.7%, while Ethereum’s share fell to 11.6%. Several factors impacted the market: uncertainty regarding decisions from the U.S. Federal Reserve, expectations of an interest rate hike from the Bank of Japan, and a correction in the AI-related stock sector. These factors triggered a wave of sell-offs in digital assets as well.
As of December 1, the Federal Reserve concluded its quantitative tightening (QT) program and is preparing to shift to “balance sheet growth” through the repurchase of short-term Treasury securities. This is expected to restore liquidity to the markets and lay the groundwork for a new cycle of cryptocurrency growth.
“According to this, it is the second consecutive month in the ‘red zone,’ signaling the market’s transition into a phase of deeper correction after a strong rally in the first half of the year.”
In November, the price of Bitcoin fluctuated between $80,000 and $87,000, losing 16.7%. However, the significant impact came from ETFs: spot Bitcoin ETFs recorded record outflows of $3.5 billion for the month, with net outflows exceeding $1 billion in certain weeks. On November 21, the trading volume of Bitcoin ETFs reached $11 billion. Meanwhile, altcoin ETFs—Solana, XRP, Litecoin—started with net inflows, indicating diversification among institutional investors even in unfavorable conditions.
Ethereum dropped by 21.3%, partly due to the anticipated December Fusaka upgrade, after which some investors took profits. Among other market leaders, Bitcoin Cash saw the smallest decline (−0.7%) and TRON (−4.2%). XRP lost 11.5%, but its ETF attracted significant funds in the early days of trading. Dogecoin, BNB, Solana, and HYPE lost between 18% and 27%. ADA fell by 31% following technical issues with the chain.
DeFi, Stablecoins, and NFTs: Dynamics and Risks
The DeFi segment experienced a 20.8% decrease in total value locked (TVL) due to local depegging of stablecoins, protocol hacks (including Balancer), and a general risk aversion. BNB Chain and Arbitrum managed to increase their share in DeFi, while discussions around Uniswap’s fee switch mechanism continue, which could alter the fee structure and impact liquidity.
The total capitalization of stablecoins also decreased—by 0.37%. This was driven by rising yields on traditional financial instruments, investors moving to cash, and liquidation of leveraged positions. USDT is gradually increasing its positions, while USDC’s share is decreasing.
Trading volumes for NFTs nearly halved—down by 48.2%. The largest declines were recorded for Ethereum-NFTs (−70%), BNB Chain (−74%), Bitcoin-NFTs (−43%), and Base (−67%). Among collections, DMarket (Mythos) maintains its leadership, while volumes for DX Terminal (Base) decreased by 77%.
Companies with large crypto portfolios (Digital Asset Treasuries) also felt the pressure: Strategy and Bitmine lost 36% and 38% in stock value, respectively. An additional risk remains the potential exclusion of such companies from MSCI indices by January 2026, as well as increased requirements from JPX. Many DAT companies are already trading at a discount to the fair value of their net assets.
Experts predict that December will be less liquid, and volatility may increase. After profit-taking in November, a short-term technical rebound is possible. In the long term, the main drivers remain changes in Federal Reserve policy and the development of cryptocurrency ETFs. DeFi and NFTs are likely to undergo a cleansing period, while crypto treasuries face the challenge of adapting their business models.
As a reminder, on December 10, the Federal Reserve lowered the interest rate by 0.25%, to a range of 3.5%-3.75%.