Bitcoin plunged on Monday, falling below €75,000 as the broader cryptocurrency market continued its sharp decline.
Cryptocurrencies opened another month in the red, with Bitcoin losing more than 5% in early European trading.
After peaking around €110,000 in early October, Bitcoin started a prolonged decline as the market faced heavy sell-offs.
In November, Bitcoin lost over 16% of its value, briefly approaching €74,000.
Ethereum and Solana also dropped more than 5%, continuing the downtrend that began in October.
Bitcoin briefly showed signs of stabilising last month, but rebounds quickly faded and prices resumed their fall.
Investor Risk Aversion Impacts Markets
Other stocks also declined in recent weeks as investors moved toward safer assets and avoided risky positions.
Low inflows into Bitcoin exchange-traded funds (ETFs) added pressure on the cryptocurrency market.
ETFs combine multiple assets, like stocks, bonds, commodities, or Bitcoin, into a single product that investors can buy.
Investors often sell ETF shares when one or more underlying assets lose value, pushing the ETF price lower.
Global market uncertainty and fading appetite for risk dragged Bitcoin down as traders exited volatile assets.
Weaker economic signals and reduced hopes for early interest rate cuts fueled the sell-offs.
Volatility Mirrors Tech Stocks
Experts link the slump to aggressive strategies employed by professional investors in cryptocurrency markets.
Many had hoped Bitcoin would act like digital gold, a reliable safe-haven asset.
Recent swings reveal Bitcoin behaves more like other technology-adjacent stocks than stable commodities.
Nvidia, known for high-demand GPU chips, experienced similar sharp declines despite earlier strong gains this year.
These patterns suggest investors should expect continued volatility in cryptocurrencies alongside tech-focused markets.
