In October 2025, Bitcoin was celebrating a new all-time high of nearly $126,000. It felt like the party would never end.
Today, checking your portfolio feels very different. With Bitcoin hovering around $87,000—a roughly 30% drop from the highs—you might be feeling a pit in your stomach. If you are new to crypto, this sea of red numbers is terrifying. You’re likely asking yourself one question:
Is this just a dip, or is the crypto bull run over?
Take a deep breath. What you are experiencing right now is painful, but it is also one of the most common events in crypto history. By the end of this guide, you will understand exactly why the market is down, why veteran traders aren’t panicking, and the smart moves you can make right now to protect your portfolio.
The Diagnosis: Correction vs. Crash
First, let’s get our definitions straight. In the emotional heat of a sell-off, everything feels like a disaster. But in financial terms, there is a distinct difference between a “Correction” and a “Crash.”
What is a Market Correction?
A Correction is technically defined as a decline of 10% to 20% from a recent peak. In the volatile world of cryptocurrency, however, standard corrections are often deeper—typically 20% to 30%.
- The Purpose: Think of a correction like a runner taking a water break. The market rose too fast, prices got “overheated,” and now it needs to cool off before it can run again.
- The History: During the famous 2017 bull run, Bitcoin dropped by 30% five separate times on its way to $20,000. Each time, it felt like the end. Each time, it recovered.
What is a Market Crash?
A Crash (or Bear Market start) is a sustained drop of 40% to 80% that lasts for months or years.
- The Cause: Crashes are usually triggered by fundamental failures—like the collapse of a major exchange (e.g., FTX in 2022) or a global economic recession.
The Verdict for November 25, 2025: While a 30% drop is painful, the current market structure suggests this is a healthy correction. The fundamental technology of Bitcoin hasn’t changed, and institutional adoption is higher than ever. We are simply paying the price for the excitement of October.
Why Is Bitcoin Dropping Now? (The Real Reasons)
If Bitcoin is “digital gold,” why is it going down? The answer lies in who owns it now.
1. The Tech Stock Mirror
In 2025, crypto doesn’t live in a bubble. It trades like a high-risk technology stock. Currently, the US tech sector is volatile due to the “AI Chip Wars” (rumors of Meta shifting away from Nvidia). When tech giants like Nvidia and Google stumble, big investors get nervous and sell their riskiest assets—crypto—to cover their bases.
2. The “Sell the News” Event
Investors spent most of 2025 buying the rumor that Bitcoin would break $100k. Once it hit $126k, savvy traders decided to “take profit.” They sold their coins to lock in their gains, creating a wave of selling pressure that drove the price down.
3. ETF Outflows
Big institutional funds (Spot ETFs) have seen a pause in buying this week. When Wall Street stops buying aggressively, the price drifts lower.
The Psychology Check: Fear & Greed
One of the best tools for a beginner is the Crypto Fear & Greed Index. It measures the emotions of the market on a scale of 0 to 100.
- Last Month (Price $126k): The index was at Extreme Greed (80+). Everyone was euphoric. That was actually a dangerous time to buy.
- Today (Price $87k): The index is sitting at Extreme Fear (~15).
Legendary investor Warren Buffett famously said:
“Be fearful when others are greedy, and greedy when others are fearful.”
When the index hits “Extreme Fear,” it historically signals that the selling is nearly done. Psychologically speaking, this is not the time to run away—it is often the time to pay attention.
The Strategy: How to Handle the Drop
If you are staring at a loss right now, here is your playbook.
What NOT To Do
- Panic Sell: If you sell now, you make your loss permanent. You lock it in. If you hold, you still own the same amount of Bitcoin; it is just temporarily valued less in dollars.
- Revenge Trade: Do not try to “win it back” by gambling on risky meme coins or using leverage. This is the fastest way to turn a 30% loss into a 100% loss.
What TO Do: Dollar Cost Averaging (DCA)
This is the secret weapon of smart investors.
- The Concept: Instead of trying to guess the exact bottom, you buy small amounts at regular intervals.
- The Math: Let’s say you bought $1,000 of Bitcoin at the top ($126k).
- If you buy another $500 today at $87k, you lower your “Average Entry Price.”
- This means Bitcoin doesn’t need to go all the way back to $126k for you to break even. You might turn a profit as soon as it hits $105k.
The “Safety List”: What Survives a Drop?
During corrections, money flees from risky assets to safer ones. This is called a “flight to quality.”
- The Safe Haven (Bitcoin): It is the first to recover when the market turns.
- Stablecoins (USDC/USDT): Holding cash (stablecoins) is a valid position. It allows you to sleep at night and gives you “dry powder” to buy if prices drop further to $82k.
- The Danger Zone: Be very careful holding micro-cap coins or trending meme coins right now. In a correction, these can drop 50-70% and may never recover.
Conclusion: The Calm After the Storm
Seeing your hard-earned money shrink is never easy. But remember: Volatility is the price of admission for crypto’s high returns.
The market is shaking out the “tourists”—the people who only here for a quick buck. If you can withstand the urge to sell when the Fear Index is flashing red, you place yourself in the same category as the veteran traders who have ridden these waves for over a decade.
Actionable Step: Close your trading app for the day. Go for a walk. If you have spare cash and a long-term mindset, consider setting a small buy order. If not, simply holding on is a victory in itself.
Frequently Asked Questions (FAQ)
Q: Is the crypto bull run over in 2025? A: Most analysts believe the structural bull market is still intact. The current drop is viewed as a mid-cycle correction driven by macroeconomic factors rather than a failure of crypto itself.
Q: Should I sell my Bitcoin at $87k to stop the losses? A: Financial advisors typically suggest that if your long-term belief in the asset hasn’t changed, selling during a dip is counterproductive. Panic selling locks in losses that might otherwise be temporary.
Q: How long do Bitcoin corrections usually last? A: While every cycle is different, mid-cycle corrections historically last anywhere from 2 weeks to 2 months before the market finds a floor and resumes its upward trend.
Q: What is the next support level for Bitcoin? A: Traders are currently watching the $82,000 level closely. If Bitcoin holds above this price, it is considered a strong bullish signal.
🔹 Jawad — Founder & Lead Writer at CoinFulcrum
I’m a crypto researcher, blockchain enthusiast, and the voice behind CoinFulcrum.com. My mission is to simplify complex crypto topics and explore how emerging tech is reshaping finance.
When I’m not analyzing DeFi trends or testing new AI tools, I’m creating content to help you stay ahead of the curve.
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