Bitcoin’s price has recently settled at $87,305 following a steep decline of 20.60% throughout November, a remarkable shift from its historically bullish performance during this month. Traditionally, November is Bitcoin’s strongest month, boasting an average return of 40.82%, but this year diverges sharply from the established trend.
As reported, short-term holders of Bitcoin now report an average cost basis of $86,787. This places them in a particularly precarious position, as it is only the third time since early 2024 that the price has dipped below this crucial threshold since Bitcoin’s price actions have shifted so dramatically.
The significant price drop triggered intense trading activity, particularly around key levels of $106,000 and $118,000. Many participants who bought into the market at these higher prices are now experiencing the harsh reality of losses, suggesting a capitulation among these investors.
Market analysts from Bitfinex noted these unusual buying patterns might have contributed to the market’s downward trend this month. They remarked on the current crossroads in which the Bitcoin market finds itself, warning of two possible directions: a resurgence in demand that could rejuvenate the price or a protracted accumulation phase where prices remain stagnant.
Increased Whale Activity Offers Hope
Amid these trials, there are glimmers of optimism as whale wallets show modest growth. Santiment, a well-regarded crypto sentiment platform, indicated a 0.47% increase in wallets holding at least 100 Bitcoin since November 11, amounting to 91 new additions to this category, hinting at renewed interest from larger investors.
While Bitcoin struggled to maintain its footing above $88,000 after dipping toward $80,000 last week, both traders and investors are now awaiting further signals from the U.S. Federal Reserve. Recent softenings in economic data have stimulated discussions regarding a potential interest rate cut in December, which could influence Bitcoin’s price movements.
Meanwhile, speculation surrounding changes in the Federal Reserve’s leadership persists, with reports emerging that Kevin Hassett, a noted advisor to former President Donald Trump, could be a candidate for the next Fed chair position.
In terms of regulatory developments, the Commodity Futures Trading Commission has announced the establishment of a “CEO Innovation Council”. Acting Chair Caroline D. Pham is currently seeking nominations for this council, intended to guide strategies around digital asset regulation and stablecoins, with a nomination deadline set for December 8.
Historically, December is not known for significant volatility in Bitcoin prices, averaging returns of just 4.75% since 2013. The market remains on alert as the yet-to-unfold final month of the year could determine the trajectory of Bitcoin going into 2026.
