Europe Drove November’s Deepest Bitcoin Selloff; BTC Near $90K as Liquidity Dries Up
Europe accounted for the bulk of November’s crypto sell-off, driving 20–25% drawdowns in Bitcoin and Ethereum as session-level returns in European hours turned deeply negative while Asia and US sessions remained broadly flat. Bitcoin steadied around $90,300–$90,400 after a turbulent month; BTC rose about 1% in 24 hours while ETH was up roughly 0.2%. Liquidity is thin ahead of the Federal Reserve decision, keeping markets fragile.
Institutional moves were notable: Strategy bought 10,624 BTC (~$963 million), funded mainly by new equity issuance, lifting its treasury to about 660,600 BTC (~$60bn). The firm’s shares have fallen about 50% over six months amid concerns over potential removal from MSCI indices. On-chain sentiment measures weakened — CryptoQuant’s Bull Score fell to zero for the first time since January 2022 — suggesting bearish indicators across many BTC metrics.
Macro forces remain key: elevated global bond yields and equity weakness ahead of an expected Fed rate cut into 2026 pressured high-beta crypto assets. Medium-term catalysts exist, including possible 401(k) rule changes in the US that could introduce substantial retirement capital to Bitcoin. Traders are watching whether BTC can reclaim the $94k–$98k band or if European hours continue to weigh on prices into year-end.
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Bearish
The news points to near-term bearish pressure. Europe drove concentrated selling in November that produced 20–25% drawdowns in BTC and ETH; session-level weakness in European hours suggests region-specific flows can continue to exert downward price pressure. Market liquidity is thin ahead of the Fed decision, increasing volatility risk and reducing the market’s capacity to absorb large sell orders. On-chain indicators and sentiment are weak — CryptoQuant’s Bull Score hitting zero is a clear negative signal historically associated with downside or consolidation phases. Although Strategy’s large BTC purchase is a bullish institutional data point, it likely reflects opportunistic accumulation funded by equity issuance rather than broad demand, and the firm’s share decline and index-risk concerns underline continued investor caution.
By analogy, past episodes (e.g., late-2018 and other deleveraging months) show that concentrated regional selling and liquidity vacuum can prolong corrections before a sustainable recovery. Short-term implications: elevated volatility, potential for further downside in European trading hours, and tightened ranges until liquidity improves or macro cues (Fed guidance, yields) shift. Long-term implications: structural catalysts (possible US 401(k) rule changes, institutional treasuries) could be bullish but depend on policy execution and capital flows; until then, the market outlook remains risk-off. Traders should manage position sizes, use tight risk controls, and watch European session order flow, bond yields, and Fed communications for breakout signals.