Bitcoin price retraced about a quarter in November, marking the largest monthly fall since June 2022.

On Friday, Bitcoin fell by as much as 6.4% to $81,629. Ethereum, the second-ranked by market capitalization, dropped 7.6%, falling below $2,700, and many other smaller tokens experienced similar declines. European stock markets also generally fell, highlighting the market's risk-averse sentiment. This also means that Bitcoin is heading towards its worst monthly performance since a series of company bankruptcies severely impacted the entire encryption industry in 2022.

Data shows that in November, the price of Bitcoin has fallen by about a quarter, marking the largest monthly decline since June 2022. In May of that year, Do Kwon's TerraUSD stablecoin project collapsed, triggering a series of company bankruptcies that ultimately led to the collapse of Sam Bankman-Fried's FTX exchange.

Despite the supportive stance of the White House under President Trump towards cryptocurrencies, and the significant increase in institutional acceptance of cryptocurrencies, the price of Bitcoin has plummeted over 30% since reaching an all-time high in early October. This drop is attributed to a massive liquidation that occurred on October 10, which caused $19 billion in leveraged token bets to vanish, leading to a total evaporation of about $1.5 trillion in the market capitalization of all cryptocurrencies.

In the past 24 hours, selling pressure has intensified, and CoinGlass data shows that another $2 billion in leveraged positions have been liquidated.

The overall market environment is also facing difficulties. Previously, boosted by Nvidia's optimistic earnings report, market enthusiasm for artificial intelligence was reignited, and U.S. stocks rose significantly. However, on Thursday evening, due to high valuations and concerns about the Federal Reserve's interest rate cuts in December, U.S. stocks retraced their gains. “Overall market sentiment is extremely gloomy. There seems to be a forced sell-off in the market, but it is still unclear how deep this sell-off is,” said Pratik Kala, portfolio manager at Australian hedge fund Apollo Crypto. (Bloomberg)