(HedgeCo.Net) Over $1 trillion has vanished from the crypto market in recent weeks, culminating in yesterday’s 7% flash crash that pushed Bitcoin below $86,000 and sent altcoins into freefall. From all-time highs above $126,000 just six weeks ago, BTC’s drawdown now exceeds 32%—officially bear market territory for many definitions.

“This is max desperation for retail,” said Bitwise’s Hougan, echoing sentiments that mid-cycle sellers are driving the pain while long-term whales accumulate. VanEck data shows oldest cohorts adding positions, a pattern seen before major rallies.

Corporate treasuries are mixed: Strategy Inc. continued buying, but smaller public firms face underwater Bitcoin holdings below $90,000. ETF outflows accelerated, with $2.3 billion exiting spot Bitcoin funds in November alone.

Global factors weigh heavy: fading rate cut odds, AI stock corrections spilling into risk assets, and regulatory uncertainty despite pro-crypto signals from the new U.S. administration.

Optimists point to history—November corrections often precede year-end rallies—and stablecoin inflows as buy signals. Pessimists warn of sub-$70,000 tests if support breaks.

As 2025’s volatile chapter unfolds, one consensus emerges: volatility is the price of admission in crypto’s maturation.