November Crypto Crash: Experts Debate Whether to Stay Patient or Cut Losses

The cryptocurrency market has lost more than $1 trillion in value since October 6, effectively erasing all the gains accumulated throughout 2025. Amid this sharp correction, investors face a pivotal decision: whether to hold their positions and wait for a potential recovery or exit the potential crypto bear market to preserve capital.

The past month has been tumultuous for the cryptocurrency market. After peaking at a record-high valuation of over $4 trillion in October, the market has faced sustained distress. Major assets such as Bitcoin and Ethereum tumbled to multi-month lows, revealing the fragility of investor sentiment.

"Crypto markets have now officially erased over -$1 TRILLION of market cap since October 6th," The Kobeissi Letter noted. The report highlighted that while crypto adoption remains at record highs, unprecedented leverage in the market amplifies downward swings during times of uncertainty or fading technical momentum.

The depth of the downturn is further evidenced by recent liquidation statistics. According to data from Coinglass, total liquidations in the past 24 hours have reached nearly $1.8 billion. Among these, nearly 441,867 traders were liquidated, with $1.38 billion coming from long positions.

The single largest liquidation occurred on Hyperliquid, where an ETH-USD position worth $26.06 million was closed unexpectedly. This trend underscores the heightened risk of over-leverage in volatile markets.

Experts are divided on whether the ongoing losses signify the start of a prolonged crypto bear market. Bearish analysts argue that this marks the beginning of a broader capitulation. Long-time Bitcoin critic Peter Schiff predicted that losses for holders could be "staggering," potentially surpassing financial downturns as severe as the dot-com bubble collapse. "Crypto is going to absolutely collapse," warned another observer, amplifying the sense of panic.

Conversely, optimistic contrarians suggest that the current dip is likely a temporary shakeout. History has shown similar declines followed by robust recoveries, urging patience among investors rather than panic sales.

Concerns are mounting over the growing concentration of Bitcoin in the hands of a new cohort of holders who lack experience managing through drastic corrections. Analyst CredibleCrypto warned, "For the first time ever, a majority of Bitcoin supply will belong to holders who have never seen an 80% drawdown." This lack of mental fortitude could exacerbate volatility and strengthen the depth of an impending bear market.

Broader market indicators suggest additional risks extending beyond the crypto space. For example, Michael Burry's 13F filings point to aggressive bearish positions through 2027, while the Buffett Indicator, currently at 233.7%, signals extreme overvaluation, hinting at a multi-year bear market. These trends suggest that cryptocurrencies and equities alike are poised for further challenges moving forward.

Despite the downturn, some analysts remain optimistic about potential recovery. Historical data shows similar corrections in 2024 that were followed by impressive rebounds. "In November 2024, Bitcoin dropped from $71k to $66k, but rebounded 60% within just 45 days," noted Ash Crypto. Additionally, promising macroeconomic signals, such as expected Fed rate cuts and QT ending in December, could set the stage for bullish momentum.

November has historically been Bitcoin’s most bullish month, and as 2025 progresses, the crypto market teeters at a crossroads, leaving its future uncertain.