In recent weeks, after bitcoin hit a record high in October, the global cryptocurrency market has seen a sharp decline. Some experts believe macroeconomic events have acted as catalysts for the sell-off, while others point to the trading tactics used by market participants.
Last week, bitcoin dropped below the 90,000 USD mark for the first time in seven months before experiencing strong fluctuations around that level. As of around 2 p.m. today (November 24), bitcoin traded above 87,000 USD, up nearly 1% from 24 hours earlier but down about 8.3% from a week ago, according to Coinmarketcap.com data. In early October, bitcoin reached an all-time high near 126,000 USD.
One of the main factors behind the crypto sell-off is the trade tension between the United States and China, which has put pressure on risk assets. On October 10, a turning point occurred when U.S. President Donald Trump threatened to impose 100% tariffs on China in retaliation for Beijing’s tightening of rare-earth controls.
The U.S. president’s move triggered a crisis in the crypto market, with a sell-off that began immediately and lasted for six weeks, wiping out more than 1 trillion USD in market capitalization. More than 19 billion USD in leveraged crypto positions were liquidated on October 10 alone.
In addition, uncertainty surrounding the U.S. economic outlook has also contributed to bitcoin’s decline. The U.S. government shutdown has delayed the release of key economic data, creating an atmosphere of instability. The Federal Reserve’s upcoming interest rate decision in December is also uncertain, making investors more cautious toward highly speculative assets.
“Bitcoin prices are increasingly influenced by macro news,” Nic Puckrin, CEO of Coin Bureau, told Euronews.
Another factor that cannot be overlooked is the complex trading strategies employed by professional traders on cryptocurrency exchanges that operate outside regulatory oversight.
Carol Alexander, a cryptocurrency expert, argues that bitcoin’s price is primarily driven by the behavior of professional traders on such unregulated trading platforms, rather than by macroeconomic factors mentioned above.
“These are not casual crypto hobbyists, but professionals from major hedge funds or specialized crypto trading firms. They use constant order-placement strategies to generate strong volatility. Their trading models are built around creating large price swings—they don’t care whether the price rises or falls, as long as it moves,” Alexander said.
In other words, these traders make money from volatility by buying when prices fall and selling when they rise, and they have no interest in long-term holding.
Once such strategies are executed, the damage often falls on inexperienced investors, including those who use heavy leverage to amplify their positions. When the market moves against them, they are often forced to sell, accepting large losses—sometimes losing everything.
When too many inexperienced investors are “wiped out” by price volatility, liquidity dries up and professional traders pull back. Prices then tend to rebound sharply, encouraging new participants. This system operates like a football match without a referee, where volatility is the only certainty, Alexander emphasized.
Nevertheless, some experts remain optimistic about the future of cryptocurrencies. Puckrin predicts the crypto market will recover and is unlikely to fall much further from current levels. He believes cryptocurrencies have gone through many cycles and have always emerged stronger. Adoption continues to grow, and regulatory frameworks are improving, allowing more people to integrate crypto technology into their daily lives, he said.
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