1 Trillion Gone In 6 Weeks: Is This The Big Crypto Crash

A sudden drop in the crypto market after such a long time has created panic among investors. The sudden $1 trillion decline in all-over currencies in just 6 weeks is considered the biggest wipeout in history. Since the crypto market closely follows Bitcoin’s rise and fall, Bitcoin’s $90,000 loss caused a drop for Ethereum and Solana as well.

The Economic Times already predicted that “Bitcoin faces a critical juncture with a 77% chance of dropping below $90,000 by November’s end, according to Polymarket. Weakening ETF flows, tech stock declines, and long-term holder selling are pressuring prices.”

Analysts and financial experts are comparing this crash to past drops to gauge its impact and severity. An analyst via Decrypt emphasized that “Bitcoin Just Erased All of Its 2025 Gains, And the ‘Picture Remains Fragile’”. According to current reports, this fall is unprecedented; the sudden and dramatic shortening has created tension among investors.

Coinpedia says “Bitcoin’s sudden drop below $90,000 has sent shockwaves across the crypto market, fueling fears that the long-awaited bull cycle may finally be losing steam. Social media is buzzing with panic, analysts are split, and traders are scrambling to decode whether this sharp correction is simply a healthy cooldown or the first major sign of a deeper crypto bear market.”

CoinDesk stated that “The drop to $89,420, its lowest level since February, comes just six weeks after prices topped out at a record $126,250, marking a sharp reversal.”

Causes Behind the Meltdown

The biggest reason for the sudden fall is investors selling to earn high profits. They sold their maximum assets to lock in the historical high prices. The government is also taking strict actions against crypto companies. The FXEmpire described that “Since its peak on 7 October, the crypto market capitalisation has fallen by more than $1 trillion, or 24%, which technically means the beginning of a bear market.”

The strict regulatory actions have caused investors to panic, leading them to sell significant holdings and shift funds into alternatives. Since inflation is rising and interest rates are also high, investors are not willing to take on high risk.

When Bitcoin’s price fell on the price chart, investors became afraid. Hence, they preferred to make a wise decision to sell on time. On November 17, Benzinga stated that “Bitcoin, Ethereum, XRP Have Wiped Out $1.1 Trillion Since BTC Hit $126,000. A $1.1 Trillion Market Collapse… the crypto market has erased roughly $1.1 trillion in value over the last 41 days, averaging a staggering –$27 billion per day.”

Market Signals and Trader Behavior

In crypto trading, some prices act as support and resistance for other currencies. The same was true of Bitcoin. When it reached $90k, the investors believed that it would never go down. But a sudden fall from $90k shattered their trust.

The RSI, MACD, and other trend-following indicators are also pointing to a further market crash. ETFs and major funding institutions backing off from the crypto market are also contributing to this sudden fall. Some traders showed panic behaviour, while others are still planning risk management strategies.

Is It Crash or Correction?

The crypto market is not facing its first crash; in the past, it has faced similar challenges and recovered quickly. Some analysts are indicating that it is a temporary correction to normalize the overheated market.

At the same time, others view it as a deep bear market cycle that can take months or years to recover from. The prices have dropped significantly, but investors still believe the situation will return to normal soon.