President Trump recently declared that making America “number one in crypto” is a top priority. This lofty goal hasn’t exactly helped Bitcoin, which has plummeted 25% in just one month, leaving Americans juggling inflation, student loans, and health care premiums while watching digital gold stumble. Summary Despite Trump’s push for America to lead in crypto, Bitcoin has plunged 25% in the past month. Institutional outflows and extreme leverage have amplified liquidations, creating a volatile and hypersensitive market. Ethereum and other altcoins have also taken heavy losses, while safe-haven gold has outperformed Bitcoin, highlighting investor caution. Crypto markets have endured a staggering decline over the past six weeks, erasing $1.1 trillion in market capitalization — or roughly $27 billion per day — according to The Kobeissi Letter, a financial research and commentary platform. The total crypto market is now about 10% below levels seen during the record $19 billion liquidation on October 10, marking what analysts are calling a structural and mechanical downturn. The selloff has been puzzling for some, given that fundamentals remain largely intact. The Kobeissi Letter points to institutional outflows beginning in mid-to-late October as a key catalyst. Crypto funds reportedly saw $1.2 billion in outflows in the first week of November, a movement magnified by extreme leverage common in the market. Crypto leverage allows speculators to take positions 20x, 50x, or even 100x their capital. In this environment, even a 2% move can trigger mass liquidations, creating a domino effect across the market. October 10th’s $19.2 billion liquidation led to the first-ever $20,000 BTC daily candlestick, illustrating just how sensitive leveraged markets have become. Over the last 16 days alone, there have been three days with liquidations exceeding $1 billion, and daily liquidations of $500+ million have become the new normal. The volatility has also shaken sentiment. The Crypto Fear & Greed Index has plummeted to 10, “Extreme Fear”, tying the low seen in February — even as Bitcoin (BTC) is up 25% since April’s bottom. Meanwhile, traditional safe-haven gold has outperformed Bitcoin by 25 percentage points since early October. The slump is particularly severe outside of Bitcoin. Ethereum (ETH) is now down 8.5% year-to-date, with a 35% drop since October 6th, underscoring the depth of the selloff despite a broader rally in risky assets. Despite the carnage, The Kobeissi Letter remains cautiously optimistic, stating, “We think the bottom is near.” Here’s the Kobeissi thread: What is happening in crypto?Over the last 41 days, crypto has erased -$1.1 trillion in market cap, or -$27 billion PER DAY.Crypto market cap is now ~10% BELOW levels seen during the record -$19 billion liquidation on October 10th.This is a structural move. Let us explain. pic.twitter.com/5JXKFSCPXV— The Kobeissi Letter (@KobeissiLetter) November 16, 2025
