Bitcoin plunged on Monday, falling below €75,000 as the cryptocurrency market extended October’s steep decline.
Cryptocurrencies opened another month in the red, with Bitcoin dropping over 5% in European trading.
After peaking near €110,000 in early October, Bitcoin entered a prolonged decline amid heavy liquidations and large-scale sell-offs.
In November, Bitcoin lost more than 16% of its value, briefly touching €74,000.
Ethereum and Solana also fell over 5%, continuing the downward trend that began in October.
Bitcoin attempted short-lived recoveries last month, but rebounds failed, and prices resumed their fall.
Risk Aversion Drives Market Behavior
Investors sold other stocks recently as risk-averse behavior returned, and Bitcoin ETF inflows remained weak.
ETFs bundle assets like stocks, bonds, commodities, or Bitcoin, allowing investors to buy one share for full exposure.
Investors often sell ETF shares when underlying asset prices drop, lowering the total ETF’s value.
Global uncertainty and weak economic signals pushed Bitcoin lower as traders dumped riskier assets.
Fading hopes for early rate cuts by central banks, including the US Federal Reserve and Bank of England, worsened the sell-off.
Experts also link the slump to aggressive trading tactics used by professional investors.
Tech-Linked Volatility Shapes Crypto
Investors hoped Bitcoin would act as a safe-haven asset similar to digital gold.
Recent fluctuations show Bitcoin behaves more like tech-related stocks than a stable store of value.
Nvidia, a top GPU manufacturer, also surged this year and experienced similar sharp declines, mirroring Bitcoin’s volatility.
The pattern signals that both cryptocurrency and tech stocks remain highly sensitive to market sentiment and trading behavior.
