#BTCVolatility $BTC
The price of Bitcoin is around US $84,000 - US $85,000 at this moment.
Recently (in October), it reached a peak close to US $126,000.
The market capitalization of Bitcoin has decreased — for example, to about US $1.814 trillion on November 19, 2025, compared to higher levels in previous weeks.
According to some sources, the weekly drop was around ~9-10% and in recent days even more.
So: volatility is high — a rapid drop from recent highs, with sharp movements both up before and down now.
🔍 What are the possible causes of this volatility?
Here are the main factors identified:
Market sentiment and global risk
There is a shift towards "risk-off" (investors become more cautious) which affects Bitcoin just like other risk assets.
Macroeconomic issues such as uncertainty over interest rate cuts by the Federal Reserve (Fed) in the U.S., which strengthens the dollar and weakens alternative assets.
Liquidity and large liquidations
When the price drops quickly, there are "liquidations" of leveraged positions (i.e., investors using debt or derivatives). These can accelerate the fall.
The drop in capitalization also indicates lower incoming money flow or outflows from institutional investors.
Limited supply and concentrated ownership
Bitcoin has a limited maximum supply (~21 million) which means that changes in demand can move the price significantly.
Large "whales" (large holders) can move amounts that impact the market.
Regulatory and geopolitical events
Trade tensions (for example between the U.S. and China) can affect investor confidence in risk assets.
