Bitcoin Posts Second-Worst Month in Three Years as November Turns Red Across Crypto

November 2025 is closing with numbers the market didn’t want to see. Bitcoin just recorded its second-worst monthly performance in three years, dropping 16.5% and erasing a large portion of the optimism that built up after its all-time-high run earlier this year.

The sharp reversal marks one of the clearest signals yet that momentum is cooling, and that bullish conviction is no longer dominating the market.

Ethereum, meanwhile, performed even worse. The asset fell 22.2% in November, cementing one of its weakest months of 2025. With only three green months recorded this year, ETH continues to lag behind bitcoin and remains highly sensitive to liquidity rotations, ETF flows, and sector-wide volatility.

But the true damage this month came from the ETF arena, where both BTC and ETH saw some of their largest outflows ever.

A Brutal Month for Bitcoin

Bitcoin’s 16.5% decline stands out not only for its severity, but for its timing. Investors entered November expecting consolidation after the ATH push. Instead, the market flipped sharply.

The drop reflects:

•  A rapid unwind of leveraged long positioning
•  A slowdown in institutional inflows
•  A broader retreat in high-beta assets
•  Cooled sentiment after months of accelerated appreciation

Market confidence didn’t evaporate, but it weakened noticeably. Traders who had been chasing upside throughout the year stepped back as macro uncertainty and year-end rebalancing picked up.

BTC still trades far above its yearly lows, yet this month shows the first real crack in its ironclad bullish narrative since early 2024.

Ethereum Faces Steeper Losses

Ethereum had an even rougher November. The asset plunged 22.2%, becoming one of the worst performers among major Layer-1s during the month.

The reasons are layered:

•  ETH has recorded only three positive months in 2025
•  Lower L2 fees are compressing revenue-based narratives
•  Rotation into higher-yield altcoins continues
•  ETH ETF flows remain extremely sensitive to macro noise

Despite multiple major upgrades this year, ETH has struggled to sustain upside momentum. Its correlation with high-beta tech assets also amplified downside moves throughout November.

ETF Outflows Hit Hard: A Red Wave Across Spot Products

If one signal captured the mood in November, it was ETF flows. U.S. spot products saw some of their heaviest redemptions of the year.

$BTC ETF Outflows

$3.48B total outflows

Biggest since February

IBIT alone lost $2.34B

BlackRock’s IBIT had enjoyed one of the most persistent inflow streaks in the entire ETF industry this year. The reversal didn’t represent a loss of faith, it represented profits being realized after months of steady gains.

$ETH ETFs Hit Record Redemptions

$1.42B in outflows

Largest monthly exit ever for ETH ETFs

ETH ETFs remain structurally smaller than BTC funds, so outflows hit harder. November’s numbers reflect both broad market derisking and the asset’s weaker year-to-date performance.

Why These Outflows Happened

Analysts point to two core drivers:

1. Profit-taking after bitcoin’s ATH run

2. Year-end institutional rebalancing

Neither suggests a fundamental shift in belief. Outflows were mechanical, not emotional.

Investors who accumulated heavily during summer and early fall simply locked in gains as portfolio managers rebalanced exposure heading into December.

Altcoin ETFs Move in the Opposite Direction

While BTC and ETH funds turned red, the altcoin ETF segment quietly printed steady inflows.

Products tracking:

•  $XRP
•  $SOL
•  $LTC
•  $HBAR

all attracted fresh capital throughout November.

The narrative here is simple:

Institutions are already diversified in BTC and ETH. Altcoin ETF exposure remains light. New inflows represent expansion, not rotation.

As one sector bleeds, another quietly grows.

This divergence shows that appetite for non-BTC/ETH exposure remains strong, especially among risk-on portfolios seeking uncorrelated performance heading into 2026.

A Cooling Market, Not a Collapsing One

November’s performance triggered speculation that the market may be entering the early stages of a broader cooldown. But the data suggests something more measured.

Key takeaways:

•  Sell-offs were orderly
•  Liquidity stayed healthy
•  Funding rates reset without panic
•  No cascading liquidations
•  ETF redemptions were expected, not surprising

This isn’t a confidence collapse.

It’s a macro-driven breather.

Bitcoin’s long-term trend remains intact. ETH’s long-term fundamentals remain predictable. And altcoin interest is still alive in institutional channels, a notable shift from the 2021 cycle.

Is This the Start of a Bearish Phase?

It’s too early to call a full trend reversal. But November did create pressure points that the market will need to digest:

1. Sentiment has cooled.

2. ETF flows are no longer one-sided.

3. Rotation out of majors is strengthening.

4. Macro conditions remain mixed heading into December.

Bitcoin recording its second-worst month since 2022 is not something traders ignore. Ethereum posting a 22% drawdown with only three green months in 2025 adds more weight.

The market isn’t bearish, but it is tired.

Momentum traders are retreating. Long-term allocators are holding. And ETF capital is waiting for better entry points.

As December begins, the market enters a critical stretch.

The key watchpoints:

•  ETF flows in the first two weeks
•  December macro prints
•  BTC reclaiming lost ranges
•  ETH stabilizing its underperformance
•  Continued strength in altcoin ETF inflows

The November flush may prove healthy if it resets the market for a stronger Q1. But if BTC and ETH fail to regain momentum, traders may interpret this month as the first signal of a prolonged cool-off.

Either way, November 2025 has already earned its place in the cycle. It was harsh, decisive, and deeply revealing, and it reminded the market that even in an ETF-powered era, crypto still knows how to surprise.

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.

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