Bitcoin's value plummets, losing $6 billion, as market fears a repeat of the halving cycle

Bitcoin plummets, losing $6 billion in value despite Wall Street and Trump support; market confidence wanes, fears of a repeat of the halving cycle

On November 17, 2025, at 1:12 PM, Bloomberg News reported that despite Bitcoin receiving support from all sides—Wall Street, the Trump administration's crypto-support policies, and institutional capital inflows—the only thing that hadn't happened was a price surge. After reaching a peak of over $126,000 in October, Bitcoin's price plummeted sharply and rapidly, temporarily wiping out its gains since the beginning of 2025, before stabilizing later. This plunge occurred in what should have been a crucial year for Bitcoin in the mainstream market, yet the selling pressure returned without any clear catalyst, resulting in a loss of over $600 billion in total market value in a short period.

While cryptocurrencies are inherently highly volatile assets, the current market concern stems from a sudden loss of confidence. Many traders are reverting to the four-year half-cycle theory, with this current cycle reflecting a peak in October following a half-cycle in April 2024. However, the presence of large institutional players manipulating prices means that previous beliefs may no longer be accurate. Analysts like Matthew Hogan believe that fear of a repeat of the same downturn has driven retail investors to withdraw first, thus pushing prices lower than before.

The latest sell-off also stems from market fatigue and over-expectations, as retail investors bought crypto assets at record highs. Meanwhile, trade tensions in early October escalated, triggering a liquidation of highly leveraged markets, leaving Bitcoin a market full of hope but lacking confidence and too fragile to withstand selling pressures if momentum shifts.

It's worth noting that the price weakness came at a time when crypto-positive factors appeared strongest, including ETFs drawing billions of dollars, Trump's pro-crypto policies, and Bitcoin's emerging role as a macro asset. However, capital inflows have slowed, with some existing investors taking profits, and several companies that once represented crypto bulls losing value to near their Bitcoin holdings, reflecting a significant weakening of sentiment.

While Bitcoin is being touted as an institutional asset class, the entire crypto market is still heavily driven by emotion. Market sentiment is currently heavily negative, risk appetite is waning, altcoins are plunging, and Trump's policies are failing to counter macroeconomic pressures. Investors are also shifting their money to new speculative trends, such as AI stablecoins and prediction markets.

Strategist Mike McGlone views Bitcoin as the tip of a melting iceberg, a risky asset, and believes most cryptocurrencies still have room for further declines. Even though the market is functioning normally and prices are higher than during the Trump election, for an asset that some predicted would reach $200,000 this year, this correction is a major disappointment. It raises the crucial question: if Bitcoin can't rise despite strong support, when will it finally surge?

Finally, some analysts warn that concerns about a repeat of the four-year cycle could actually be triggered by premature investor withdrawals, while others point to the key driver of past bull cycles being not just halvings but global liquidity, which could return once the US emerges from the government shutdown.

Reference: bloomberg.com

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