Is the crypto crash over? Here is the complete picture

Whether the crypto crash is completely over is still under debate. A comprehensive market analysis suggests that the situation is complex. This is while there is a market correction currently, which is creating a period of extreme fear. There are, however, fundamental bull cycle drivers still intact.

To understand the complete picture, we have to take a look at the sharp price volatility, the strategic shifts in whale movements, the cascade of forced liquidations, and historical market patterns. In this article, we will try to unravel these matters in detail.

A Reality Check On The November Price Correction

The crypto market had been suffering severe downturns throughout November. This downturn had wiped out most of the traders’ yearly gains of 2025. With caution filled in the air, the investor sentiment became one that reflected reducing their risk exposure to assets like Bitcoin and Ethereum.

Bitcoin saw a massive drop of 30% from its yearly high of $126,000. This tumble went on to lows that marked near prices of $81,000. Even though there was a rebound after this, fear hasn’t left the market, as the current fear and greed index reports a value of 20, which suggests that there is a persistent fear in the market.

The price correction amplified fear as the rest of the year was marked with optimism surrounding widespread institutional adoption through several ETFs and other factors. As of November 27, 2025, Bitcoin’s price started stabilizing near $90,000 mark; however, this is no surefire way to say that the crash is over since this price is significantly below the peak of what Bitcoin had reached this year.

Whales Go From Selling To Accumulation

The actions of large holders have been a key factor in driving the latest volatility. During the October peak and the subsequent downturn, on-chain data showed significant selling pressure from huge whales holding between 1000 and 10,000 BTC. The long-term investors followed the whales in this profit-taking. This created an immense selling pressure that drove the price downwards.

However, a notable shift occurred as prices plunged to multi-month lows. In late November, data indicate a reversal in this trend. This trend reversal involved large holders stopping the selling spree and once again accumulating BTC. Mid-sized holders and entities holding 10,000 BTC or more started accumulating once again, capitalizing on the market’s dip.

This buyback is a clear indicator that certain seasoned long-term players view the current price as the new floor for long-term investment until the next profit-taking spree. This divergence in whale behavior is where selling at highs and buying at lows happens. This is a classic market cycle pattern that signals a potential long-term bottom.

The Deleveraging Event

A significant factor amplifying the speed and severity of the correction was the large number of continuous liquidations of leveraged positions. A historic 19 billion US dollars worth of leveraged positions were liquidated in a single day in October of 2025. These liquidations were heavily fueled by the geopolitical tensions and the already overleveraged market conditions.

The massive deleveraging event created a loop as forced selling triggered more selling on the spot market. This damaged the asset liquidity and further affected prices and the stability of crypto assets. Many analysts view this massive clearing as a necessary cleansing process that removes speculative positions, potentially setting the stage for a more stable recovery.

Taking the Historic Data Into Account

Crypto markets are notorious for their boom-and-bust cycles. The present 31% drawdown is significant; however, it is not unprecedented, as it aligns well with past mid-cycle corrections. As an example, the market saw a massive 60% crash during the COVID crisis in 2020.

The market has then overcome such corrections in the following years. So this correction could be a signal of a further bull run; however, it cannot be said with 100% certainty that the correction phase is over.

The historical pattern offers a framework for analyzing the current situation. With the recent, rather unsettling, negative activity was a shock for the market; it cannot be said with certainty that the bull run has ended for all eternity.

The underlying structural drivers remain strong for long-term growth. This is reinforced by the fact that there is continued demand for institutional adoption in the form of ETFs. With more real-world applications coming into play via DeFi and Web 3.0 ecosystems, the future seems to be one that is filled with hope.

Conclusion

However, we are not out of the near-term risks. Macroeconomic factors like Fed rates and global liquidity conditions still pose a threat to the potential bull run. With stronger resistance and fragile support levels, the correction phase may continue, and we can expect further drawdowns.

For instance, BlackRock’s IBIT has seen massive capital outflows amidst a recovering market. It is events like this that cause the uncertainty that persistently haunts the crypto market.