The cryptocurrency market is experiencing one of its most significant declines in recent history, with over a trillion dollars in value erased in the past six weeks. Bitcoin has fallen below the $90,000 mark, a level not seen in months. This November 2025 meltdown has caused considerable unease among both retail and institutional investors, raising questions about whether this crash can be compared to the catastrophic event triggered by the failure of FTX in 2022. Analysts suggest that while the losses in 2025 are substantial, the market structure and circumstances differ significantly from the chaos of three years ago.
What Triggered the November 2025 Crash
Unlike the FTX-driven meltdown, the current market decline appears to be primarily influenced by macroeconomic pressures, leveraged unwinds, and a general decline in risk sentiment. Bitcoin has endured its most challenging week since 2017, dropping more than 30 percent from its October highs. Investor confidence has been eroded by tightening liquidity conditions and growing concerns that global central banks may not implement interest rate cuts as swiftly as anticipated.
The correction intensified as leveraged long positions were liquidated across most exchanges, exacerbating the price drops for Bitcoin, Ethereum, and other large-cap altcoins. This sell-off gained further momentum when Bitcoin breached the critical psychological support level of $90,000, leading to widespread losses throughout the market.
Comparing Today’s Crash to the FTX-Era Bear Market
In November 2022, the collapse of FTX precipitated one of the most severe crises in the industry. This event pushed the overall market value below $800 billion and severely damaged confidence in centralized trading platforms. That downturn was characterized by systemic counterparty risk, bankruptcy contagion, and revelations of fraud, resulting in a prolonged crisis of confidence.
Is Nov 2025’s Crypto Crash Worse Than FTX 2022?
Crypto lost $1.3T in weeks — $BTC plunged from $126K to <$85K and $ETH dropped 40%. Liquidations hit record levels.
But unlike 2022, there’s no systemic failure: no major bankruptcies, ETFs stayed functional, and institutions…
— Wise Crypto (@WiseCrypto_) November 25, 2025
In contrast, the November 2025 drop, while precipitous, does not stem from a similar structural failure. The market infrastructure remains intact, on-chain settlements are functioning as expected, and no major institutions have reported liquidity issues. The significant aspects of this crash are the speed and scale of capital flight, with analysts pointing to ETF outflows, forced selling, and dwindling momentum as contributing factors to a potential doom loop. Nevertheless, the current downturn is viewed more as a significant market correction rather than a crash driven by internal corruption.
How Severe Is the Damage?
In absolute dollar terms, the 2025 crash is arguably larger. The decline to single-digit Bitcoin prices has wiped out hundreds of billions in market value within weeks, and altcoins have experienced losses reminiscent of early 2022. However, the cryptocurrency market is considerably larger and more institutionally supported now than during the FTX era. Consequently, despite the steep decline, it has not resulted in the same existential reckoning that was experienced in the previous crash.
Conclusion
The severe November 2025 crypto crash, marked by significant outflows and forced liquidations, is undeniably impactful. However, when compared to the bear market caused by the FTX collapse, the current downturn lacks the systemic contagion and crisis of confidence that crippled the industry in 2022. Instead, the present sell-off appears to be a macro-driven correction within a larger, more robust market. The extent to which this develops into a prolonged bear cycle will largely depend on the stabilization of liquidity conditions and the pace at which institutional investors re-enter the market once volatility subsides.