Cryptocurrency markets are undergoing a sharp correction, erasing over $1.2 trillion in value globally over the past six weeks, according to reports from Financial Times and CoinGecko. The downturn, which began November 6th after Bitcoin reached a peak of $73,750.07, has wiped out all of 2025’s gains for the asset class and intensified scrutiny of the risks associated with leveraged trading. A meaningful catalyst for the recent sell-off appears to be market reaction to geopolitical factors and commentary from former U.S. President Donald Trump.
Highly Leveraged Positions Fuel Cryptocurrency Sell-Off
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(Seoul=Yonhap News Agency) – Cryptocurrency markets have shed $1.2 trillion (approximately ₩1,760 trillion) in value over the past six weeks, signaling a significant downturn for the asset class.
Financial Times reported the figure, citing data from CoinGecko.
According to CoinGecko, the total market capitalization of over 18,000 cryptocurrencies has fallen 25% since November 6th, when Bitcoin reached an all-time high of $73,750.07. This decline represents a loss of $1.2 trillion in market value.
As of 10:00 a.m. on November 19th, Bitcoin was trading at $61,845, according to Coinbase.
This reverses all of the year’s gains, bringing the price back to levels seen at the end of last year. The volatility underscores the inherent risks associated with cryptocurrency investments.
Brett Knoblauch, a cryptocurrency analyst at Cantor Fitzgerald, stated, “Despite increased institutional adoption and positive regulatory developments, the year’s gains in the cryptocurrency market have now completely evaporated.”
Analysts attribute the recent sell-off to losses incurred by highly leveraged positions. The market’s sensitivity to external factors was highlighted by comments from former President Donald Trump.
On November 10th, ahead of a U.S.-China summit, Trump threatened to impose a 100% tariff on Chinese goods, triggering a liquidation of approximately $20 billion (₩29 trillion) in leveraged cryptocurrency positions. This resulted in the largest single-day drop in cryptocurrency history, with Bitcoin plummeting over 14% within 24 hours.
Ryan Rasmussen, Head of Research at Bitwise Asset Management, commented, “Cryptocurrency investors love leverage. What we consistently see is traders taking on excessive risk, believing ‘this time will be different.’”
Meanwhile, Bloomberg reports that Bitcoin has been the worst-performing asset compared to the Nasdaq Composite, the iShares 20+ Year Treasury Bond ETF, gold, the U.S. Utilities Index, and the MSCI Emerging Markets Index, falling 30% from its year-to-date high.
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