The cryptocurrency market continues its downward trend.
This morning (November 16th), the cryptocurrency market experienced a widespread sell-off, with Bitcoin briefly falling below the $95,000 mark, and Cardano and XRP dropping by over 2%. Coinglass data shows that nearly 100,000 people were liquidated in the cryptocurrency market in the past 24 hours. Some analysts point out that the main reason for the sharp decline may be the continued withdrawal of funds from the cryptocurrency market. At the same time, negative discussions surrounding the three major cryptocurrencies—Bitcoin, Ethereum, and XRP—have also increased dramatically.
As a result, the wealth that US President Trump's family gained from cryptocurrencies has shrunk significantly. In the month since Bitcoin hit a high of $126,272 on October 5th, the prices of cryptocurrency-related stocks and tokens held by Trump and his family have plummeted by approximately 30%. Furthermore, US-listed companies involved in cryptocurrency trading have also experienced a sharp sell-off, with MicroStrategy, the world's largest "Bitcoin treasury" company, seeing its stock price fall by over 32% in the past month.
Cryptocurrency market plunges across the board
On November 16th, Beijing time, the cryptocurrency market experienced a sharp decline across the board. Bitcoin once fell below the $95,000 mark. As of press time, it was down 0.7% at $95,812. Ethereum once fell by more than 1%, while Cardano and XRP fell by more than 2%.
According to Coinglass data, nearly 100,000 people were liquidated in the cryptocurrency market in the past 24 hours, with a total liquidation amount of $180 million.
This means that since the flash crash on October 10, the shockwaves in the cryptocurrency market have shown no signs of abating—the total market capitalization loss of all cryptocurrencies has exceeded $1 trillion.
Regarding the continued sell-off in the cryptocurrency market, market analysts believe that capital outflows are a significant factor, and the cryptocurrency market may be entering a vulnerable period. Patrick Munnelly of Tickmill Group noted in a report that major investment funds, exchange-traded fund investors, and corporate finance departments have withdrawn from Bitcoin, taking away "a key pillar supporting this year's rebound," thus "ushering in a new era of market vulnerability."
A report from market sentiment analysis platform Santiment shows a sharp increase in negative discussions surrounding the three major cryptocurrencies—Bitcoin, Ethereum, and XRP—with a significant drop in the positive/negative sentiment ratio and sentiment levels far below normal. This indicates that negative sentiment is dominating the cryptocurrency market, and investor confidence remains low.
Since the massive liquidation event on October 11, key sentiment indicators show that market sentiment has failed to recover and has instead deteriorated further.
Behind the continued sell-off in the cryptocurrency market, long-term holders are engaging in a concentrated sell-off.
According to reports, the sell-off by "whales" (large holders with more than 1,000 bitcoins) and long-term holders was a significant factor behind Bitcoin's drop below the key $100,000 milestone.
Blockchain Data shows that long-term Bitcoin holders have sold approximately 815,000 Bitcoins in the past 30 days, marking the largest sell-off since early 2024. More significantly, whale wallets holding Bitcoin for over seven years are continuously selling at a rate exceeding 1,000 Bitcoins per hour.
This sell-off is characterized by a “continuous, staggered distribution” rather than a sudden, coordinated sell-off. Analysis shows that many early holders viewed $100,000 as a psychological threshold—a profit-taking level they had been discussing for years. Since Bitcoin first broke $100,000 in December 2024, the sell-off by long-term holders has accelerated.
Cory Klippsten, a veteran in the Bitcoin industry and CEO of Swan Bitcoin, said: "Many early holders I know have been talking about the $100,000 figure since I entered this space in 2017. For some reason, this is the level that people have been saying they will sell some of."
ETF fund flows confirm weak demand. As of Thursday, Bitcoin ETFs saw net outflows of $311.3 million this week, marking the fifth consecutive week of outflows, the longest streak since March 14. The cumulative outflow over the past five weeks has reached $2.6 billion, second only to the $3.3 billion outflow over the five weeks ending March 28.
The Trump family suffered heavy losses.
As the cryptocurrency market becomes volatile, the wealth that US President Trump's family has gained from cryptocurrencies has also shrunk significantly.
In the month since Bitcoin hit a high of $126,272 on October 5, stocks and tokens related to cryptocurrencies held by Trump and his family have fallen sharply.
The Trump family's cryptocurrency portfolio includes Trump Media & Technology Group, as well as blockchain company World Liberty Financial and Bitcoin mining company American Bitcoin. World Liberty Financial tokens, along with shares of American Bitcoin and DJT, have all plummeted by approximately 30% since Bitcoin's October high.
According to Trump's government financial disclosure in mid-June, Trump indirectly held nearly 115 million DJT shares through a revocable trust under his son Don Jr., worth approximately $1.3 billion based on Friday's prices, a significant decrease from nearly $2 billion in early October.
According to the World Liberty website, Trump and his family hold approximately 22.5 billion World Liberty Financial tokens, worth about $3.4 billion based on Friday's prices, down from a peak of $4.5 billion. Eric Trump holds a 7.5% stake in American Bitcoin, currently worth about $340 million, a significant decrease from its peak of $480 million.
Despite the Trump administration's numerous efforts to promote the cryptocurrency industry—including establishing a Bitcoin "strategic reserve" and the U.S. Securities and Exchange Commission— The SEC dropped its lawsuits against companies like Coinbase and Binance—but these policy benefits failed to prevent a sharp correction in the cryptocurrency market.
Meanwhile, US-listed companies involved in cryptocurrency trading also experienced a sharp sell-off. On November 14th, Eastern Time, the stock price of MicroStrategy (MSTR), the world's largest Bitcoin treasury company, plummeted by more than 4%, with the cumulative decline over the past month widening to 32.69%.
It's worth noting that the company's total market capitalization has fallen to $57.4 billion, while its Bitcoin holdings are worth $62.3 billion. This means its relative net asset value multiple (mNAV) has fallen to approximately 0.95 times, marking the first time in the company's history that its market capitalization has fallen below its Bitcoin holdings.
In a media interview, Michael Saylor, co-founder and executive chairman of the company, refuted speculation that on-chain data was causing a sell-off, stating, "We are buying Bitcoin and will announce the next batch of purchases on Monday morning. I think people will be surprised. In fact, we have been accelerating our purchases."
MicroStrategy's business model relies on issuing shares and convertible bonds at a premium to purchase Bitcoin, but the current market capitalization discount means that this financing mechanism has become ineffective.
(Source: Securities Times)
