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\n\t\t\t\t\t\t\t\t\tThe BTC correction has extended the drawdown from its all-time high to 36%, making it the largest in this cycle, both in percentage and in the scale of long liquidations.\t\t\t\t\t\t\t\t<\/p>\n<\/p><\/div>\n
Bitcoin (BTC) ended last week with negative returns amid the broader crypto market\u2019s continued decline. Analysts at the crypto exchange Bitfinex revealed in a weekly report that the record marked the fourth consecutive weekly decline for the leading digital asset.<\/p>\n
According to Bitfinex, the last time BTC recorded<\/a> four straight weeks of negative returns was during the lengthy consolidation phase between March and October 2024. However, at the time, the peak-to-trough plunge was roughly 24.1%. This time, BTC has fallen 30.6% over the past four weeks.<\/p>\n Last week, BTC recorded a peak-to-trough decline of 16%, closing the 7-day period with an 8.65% plunge. The correction has extended the drawdown from its all-time high to 36%, highlighting the ongoing decline as the largest in this cycle, both in percentage and in the scale of long liquidations.<\/p>\n Amid the drawdown, short-term holders (those holding BTC for 155 days or less) are capitulating. This investor cohort is seeing an acceleration in selling at a loss, with BTC falling below the lower band of their cost-basis model. The seven-day Exponential Moving Average of short-term holder realised losses has risen to $523 million per day. This is the highest level recorded since the collapse of the defunct crypto exchange FTX.<\/p>\n Currently, there is a high level of distress among recent BTC buyers. They have been forced to exit<\/a> their positions amid mounting unrealized losses. This level of loss realization shows how top-heavy the market became before the ongoing correction \u2013 the BTC supply between $106,000 and $118,000 was far denser than in previous cycle peaks.<\/p>\n The current downturn is so severe that the market has recorded unprecedented liquidation activity. The $19.2 billion liquidation event of October 10 is the largest seen in a single day in history. The market saw an additional $3.9 billion in liquidations last week, underscoring the pressure on leveraged traders across the derivatives sector.<\/p>\n Meanwhile, the market is on track to end November on negative terms. This month has historically yielded an average return of 40.8% and a median of over 8.2% since 2013. If the bears persist, then November will follow October, which closed in the red for the first time in seven years.<\/p>\nBTC Corrective Phase Continues<\/h2>\n
November to End on Negative Note<\/h2>\n
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