The crypto market downturn of early November 2025 has left several blockchain companies with billions in unrealized losses, as sharp liquidations and leveraged trades erased over $1 trillion in total market capitalization. Despite the sell-off, analysts note that institutional accumulation remains steady, suggesting the correction may be driven more by market mechanics than by weakening fundamentals.
Treasury Firms See Mounting Unrealized Losses
The sharp decline in crypto valuations has exposed the risk concentration among firms holding digital assets as treasury reserves.
- •BitMine, known for its large Ethereum treasury, recorded about $2.1 billion in unrealized losses.
- •Strategy, the Bitcoin-focused public company, saw its share price drop 53% by November 7, even though its average BTC acquisition price remains below current spot levels.
- •Evernorth, which recently pivoted to an XRP-based reserve model, reported $78 million in paper losses just weeks after building its position.
- •Metaplanet, a Japan-based financial firm often dubbed “Asia’s MicroStrategy,” faces nearly $120 million in unrealized Bitcoin losses, with its stock down 80% from peak levels.
These paper losses highlight how crypto treasuries, once viewed as a strategic hedge, can amplify financial stress when volatility spikes.
A $1 Trillion Market Correction
Between early October and early November, the global crypto market shed more than $1 trillion in value as Bitcoin’s slide to $100,000 triggered a chain of long liquidations and leveraged unwindings. More than $1 billion in long positions were liquidated across major exchanges in a single week, magnifying the sell-off’s velocity.
Analysts attribute the downturn to macro tightening pressures, profit-taking after record highs, and fragile leverage structures in derivatives markets. Yet, they emphasize that fundamentals remain strong, with institutional ETF inflows continuing despite the correction.
Outlook: Short-Term Pain, Long-Term Resilience
As volatility ripples across digital-asset markets, crypto treasuries are being tested like never before. However, analysts argue that the current drawdown may ultimately strengthen the ecosystem by flushing out excessive leverage and reaffirming the dominance of fundamentally sound assets like Bitcoin and Ethereum.
If institutional inflows continue and derivatives markets stabilize, the latest correction could mark a reset before the next growth phase, rather than the start of a prolonged downturn.