Bitcoin Price Drops 20%, Stablecoin Market Cap Declines by $2 Billion: A November Overview

November proved to be a challenging month for the cryptocurrency market, with Bitcoin's price dropping over 20%, resulting in a loss of nearly $2 trillion in market capitalization. Rising concerns surrounding potential interest rate cuts from the US Federal Reserve and fears of an upcoming AI bubble burst have added to the anxiety in both crypto and stock markets. This bearish sentiment was further highlighted when Bitcoin experienced a "death cross," with the 50-day simple moving average moving below the 200-day average on November 15.

Key Takeaways

Bitcoin's price fell over 20% in November, dropping from $110,000 to about $91,000.
Seven countries are revising their crypto tax regulations amid rising adoption.
17% of Bitcoin's supply is now held by companies and governments.
Global inflation rates are easing among many G20 nations, which could influence cryptocurrency adoption.
The stablecoin market cap has decreased by $2 billion—its largest drop since the FTX collapse last year.

Bitcoin price down 20%, stablecoin market cap down $2B: November in charts

According to Trading Economics, global inflation rates slowed in November across several major economies, with 17 out of 20 G20 countries seeing a decline in inflation for the month—a part of a larger trend.

As cryptocurrency adoption grows, regulatory bodies worldwide are grappling with how to tax these digital assets. Seven countries have begun updating their crypto tax regulations.

Countries Update Crypto Tax Regulations

As cryptocurrency adoption surges at the institutional level, regulators face mounting pressure to determine how to approach the taxation of various digital assets.

Taxes, Europe, G20, United States, Features

In November, seven different jurisdictions began revising their crypto tax regulations. In the US, the White House is currently reviewing an IRS proposal to adopt the global Crypto-Asset Reporting Framework, which would allow tax authorities access to Americans' foreign crypto account information. Meanwhile, in Spain, the Sumar party proposed raising the top tax rate on crypto to 47%, replacing the current 30% savings tax rate, and implementing a flat 30% tax for corporations.

Switzerland has opted to postpone its new reforms until 2027. Brazil is considering a tax on international crypto transfers, while Japan is eyeing a reduction in the crypto tax rate to 20% from the current 50%. France may implement a tax classification for "unproductive wealth" related to crypto, and the UK is working to simplify tax reporting for decentralized finance.

Bitcoin Experiences Significant Price Decline

The cryptocurrency markets faced a downturn in November, with Bitcoin's price plummeting from $110,000 to approximately $91,000 at the time of publication. The price hit a low of $82,600 on November 21.

Bitcoin Price Drop Graph

Bitcoin dropped below $100,000 during this drastic sell-off, marking the first occurrence of this since May 2025. Analysts at Deutsche Bank noted that the current collapse has seen the market cap fall to $1.8 trillion, which is particularly notable.

Bitcoin Market Cap Loss

Despite the worst November for Bitcoin in recent years, some analysts retained an optimistic outlook. Justin d’Anethan, head of research at Arctic Digital, stated that while prices fell, the change in market dynamics represents an important shift, as institutional investors are beginning to play a major role in influencing crypto price movements.

Increasing Bitcoin Ownership Among Companies and Governments

An increasing number of companies, financial institutions, and even governments are expanding their Bitcoin holdings. As of the end of November, 17% of the total Bitcoin supply, which is capped at 21 million BTC, is owned by these entities.

Bitcoin Ownership Distribution

Exchange-traded products and firms holding Bitcoin in their treasuries are contributing to a greater concentration of Bitcoin ownership. Exchange-traded funds alone account for over 7% of the total Bitcoin supply. Public and private companies are also increasingly adding Bitcoin to their balance sheets, following the successful strategy of Michael Saylor. According to BitcoinTreasuries.Net, 357 companies now hold Bitcoin in their treasuries. The presence of large institutional players is influencing the market dynamics significantly, despite some concerns regarding centralization.

Eased Inflation Rates Across G20 Nations

The early 2020s witnessed skyrocketing inflation as nations faced the challenges of COVID-19, supply chain disruptions, the Russian invasion of Ukraine, and the Israel-Gaza conflict. While inflation remains high in many regions, 17 countries within the G20 saw a dip in their inflation rates in November.

G20 Inflation Rates

Inflation plays a crucial role in cryptocurrency adoption, particularly in the developing world, where countries experiencing high inflation rates often turn to cryptocurrencies—especially stablecoins pegged to the US dollar. On November 25, Bolivia's economy minister, Jose Gabriel Espinoza, announced that the government would allow banks to provide crypto custody services and recognize digital currencies as legal tender for savings accounts. Stablecoins have become increasingly popular in Bolivia, with some merchants listing prices in Tether’s USDT.

Decline of the Stablecoin Market Capitalization

The stablecoin market had been on an upward trend for 26 months but saw a notable decline of $2 billion in November—a drop of roughly 0.62%. This marks the steepest decline since November 2022, when the collapse of FTX severely impacted stablecoin markets.

Stablecoin Market Capitalization Decline

During this time, USDT saw its market dominance increase by nearly 0.50%, while Ethena USDe dropped by 26.8%. The total value locked in Ethena fell sharply as traders exited various strategies. A report from the crypto exchange BitGet noted that worries regarding stablecoin stability and heightened regulatory scrutiny have dampened enthusiasm for stablecoins.

Related: Fiat inflation drives crypto adoption across the globe