Cryptocurrency Market is Falling: Bitcoin Dropped to $96K, But Is There Reason for Panic?

The cryptocurrency market is experiencing a significant decline: global capitalization has decreased from $4.28 trillion to $3.27 trillion in recent days, which is the lowest indicator in the last six months. Bitcoin, the flagship cryptocurrency, today costs around $96,000, which is 13% lower over the last week and significantly less than the recent high of over $100,000. Other assets, such as Ethereum, Solana and Zcash, have also suffered losses, forcing investors to wonder: what caused this crash and is it the beginning of a deeper correction?

Reasons for the Fall

Analysts link the current decline to several key factors. Firstly, the "risk-off" sentiment in global markets is intensifying: investors are avoiding risky assets due to rising yields on US Treasury bonds and the strengthening dollar. This creates pressure on cryptocurrencies, which often correlate with technology stocks. For example, the recent crash in the artificial intelligence and technology sector has spilled over to crypto, leading to outflows from Bitcoin ETFs.

Secondly, liquidity in US markets is decreasing, and tax pressure on investors is increasing - many are selling assets to lock in profits before the end of the year. Long-term holders (LTH) are also increasing sales, which started at the end of 2024 and intensified in 2025. According to data, Bitcoin dropped below $95,000 on November 14, which is the lowest level since May, and this is accompanied by increased volatility during US trading hours.

In addition, the overall market sentiment has shifted to the "extreme fear" zone, which often leads to panic selling. Analysts from CoinDesk note that hopes for new Bitcoin highs in 2025 are fading due to these macroeconomic factors. Binance, one of the largest exchanges, in its market update for November 15, reports a 5.79% drop in capitalization per day, with Bitcoin price in the range of $95,934-$103,484.

FUD Around Big Players: Sell-offs from Saylor and Binance?

Among the reasons for the fall, FUD (Fear, Uncertainty, Doubt) is actively spreading - rumors about massive Bitcoin sell-offs by big players. In particular, there are claims that Michael Saylor, CEO of MicroStrategy, and the Binance exchange are selling their Bitcoin holdings. Referring to data from Arkham Intelligence, some sources claim that MicroStrategy is selling off assets, but detailed analysis shows that this is not true – the company continues to accumulate Bitcoin.

Michael Saylor himself in a recent interview on CNBC stated: "We are buying Bitcoin. We are accelerating our purchases"

In his X, he emphasized the "HODL" strategy (hold long), refuting rumors of sales. Similarly, rumors about Binance sell-offs appear during every significant market drop, but there is no confirmed data about massive sales by the exchange. Binance Research in its November report focuses on market trends, not mentioning its own sell-offs, but rather integrating new assets, such as the BUIDL token from BlackRock for collateral.

These rumors, spread in networks like Telegram, are often part of manipulations to amplify panic. However, as experts note, large "whales" on Binance continue to buy on dips, not sell.

Correction or New Bear Market?

Although the current decline looks alarming, some analysts, such as from Bitwise, see signs of easing selling pressure, which may give hope for recovery. The crypto market often recovers after such corrections, especially if macroeconomic conditions stabilize. Investors are advised to avoid emotional decisions and focus on fundamental factors, such as institutional adoption of Bitcoin.

In any case, crypto is a volatile market and the current drop may be an opportunity for long-term investors.