Deepest Drawdown Since 22-23
A deep BTC drawdown has unleashed heavy volumes and significant ETP selling. As leverage trends lower and BTC deviates sharply from the Nasdaq, we view the dislocation as an attractive opportunity for long-term entries.
Preview
Deepest drawdown since the 2022-2024 eraBTC has now suffered a 36% peak-to-trough decline from its October 6 ATH, its deepest drawdown since early 2024, following four straight negative weekly closes. The November 20 selloff saw BTC fall alongside U.S. equities, with the Nasdaq posting its sharpest daily drop since October. While equities have since fully retraced the decline, BTC remains weaker, still trading 4.2% below its November 20 open despite the rebound.The crash triggered a spike in activity: BTC spot volumes jumped to $14.3bn and BTC ETPs recorded their second-largest 2025 outflow. Perpetual futures open interest briefly hit a yearly high near 325,000 BTC before easing to 300,000 BTC as funding rates fell, signaling long-position reduction. With U.S. markets partially or fully shut later this week for Thanksgiving, BTC may find room for consolidation.
