Crypto executives say a combination of factors—including outflows from crypto exchange-traded funds, selling by long-term whale holders, and rising geopolitical tensions—may be driving the latest market downturn, which saw Bitcoin slide to nearly $93,000 on Sunday.
Bitcoin briefly touched a year-to-date low of $93,029, while the broader crypto market also retreated. Total market capitalization fell from $3.7 trillion on Nov. 11 to $3.2 trillion on Monday, according to CoinGecko.
Ryan McMillin, chief investment officer at Australian crypto investment firm Merkle Tree Capital, told Cointelegraph that the decline isn’t being caused by any single shock but rather a combination of pressures hitting the market at once.
Multiple factors are dragging down crypto prices
McMillin noted that on-chain data shows long-term holders “finally cashing in after an extraordinary run,” contributing to the downturn. He added that current market conditions—strong fundamentals paired with liquidity headwinds—are creating room for prices to fall even further.
“At the same time, spot Bitcoin ETFs and other vehicles that were huge buyers earlier in the cycle have swung to net outflows just as global markets have turned more risk-off and rate-cut hopes have been pushed out.”
“Combine all of that and you get older coins being offloaded into weaker demand within a macro environment that’s far less forgiving than it was six months ago,” McMillin said.
Matt Poblocki, general manager of Binance Australia and New Zealand, noted that the latest volatility underscores that crypto is still a developing asset class, heavily shaped by global macroeconomic and geopolitical forces.
Holger Arians, CEO of Banxa, a crypto payments and compliance infrastructure provider, added that markets have been running “very hot” compared with current global conditions.
“We’re dealing with several unresolved—and in some cases escalating—geopolitical tensions. At the same time, global tech valuations have continued rising on future expectations. A broader risk-off moment was almost inevitable after a year of optimism,” he said.
“And while crypto can sometimes move independently from traditional markets, this is one of those periods where people are simply waiting, watching, and trying to make sense of a turbulent year.”
Other crypto executives shared their theories on X as well. Hunter Horsley, CEO of Bitwise Asset Management, suggested that the long-standing four-year cycle narrative may be playing a role in the pullback. He said many traders fear a cyclical downturn and, by selling in anticipation of it, ultimately help drive the market lower.
Tom Lee, chairman of Ether treasury firm BitMine, suggested that market makers facing “a major hole” in their balance sheets may be vulnerable to aggressive players looking to trigger liquidations and force Bitcoin’s price lower.
Sharp corrections are a regular part of any market
Even so, most crypto analysts believe the broader market is still well positioned for a rebound.
“These kinds of sharp corrections are a normal part of a market cycle,” Poblocki said.
“What’s important is that we continue to see retail investors staying invested in the market and rotating toward blue-chip assets like Bitcoin and Ethereum rather than exiting altogether. That’s a strong sign of long-term confidence.”
“ETF flows have softened slightly in line with broader risk sentiment, but we’re not seeing major redemptions. The bigger picture is unchanged — institutional participation remains strong, and retail investors are behaving more cautiously,” he added.
Arians said the current pullback may soon reverse, noting that core fundamentals continue to improve. He pointed to growing regulatory clarity, expanding real-world use cases, and increasing engagement from traditional finance.
“Even though prices feel soft, the underlying infrastructure has never looked stronger. Stablecoin volumes, on-chain activity, developer momentum — all are quietly trending in the right direction. The market may feel slow, but the rails being built now are setting up the next cycle,” Arians said.
Crypto market is still stronger than in previous cycles
McMillin echoed the view of macro analyst and Wall Street veteran Jordi Visser, who argues that while long-term Bitcoin holders are selling and new traders are stepping in, the market’s foundation is more resilient than in the past.
“In previous cycles, this level of long-term holder selling would have resulted in a 70–80% drawdown. Yet despite significant OG distribution, prices have fallen far less, because ETFs and other institutional channels are now deep enough to absorb much of that supply,” he said.
