Bitcoin is showing signs of weakness this month, with analysts at Bitfinex suggesting a potentially sideways or downward trend, but underlying demand could stir soon.
Current Market Overview
Bitcoin has struggled to maintain its previous momentum, experiencing a notable decline in recent weeks. As of late November 2025, Bitcoin is trading below $104,000, a significant drop from its October all-time high. The cumulative decline over the past month has exceeded 30%, surpassing the 24% drop seen during the consolidation phase of 2024. This downturn raises concerns about whether the market has entered a bear phase, marking November as potentially the weakest month since the 2022 collapse.
Bitfinex's Analysis
Bitfinex analysts point to several factors contributing to this sluggish performance. Macroeconomic uncertainty, influenced by inflation data, interest rate decisions, and slowing global liquidity, is dampening investor enthusiasm. The U.S. Federal Reserve's cautious tone, combined with slower economic growth in Europe and Asia, has made traders skittish about riskier assets like cryptocurrencies. This environment has also led to lower liquidity in the markets, as investors shift to safer assets such as bonds and gold.
A recent report from Bitfinex Alpha indicated that Bitcoin had failed to stay within its consolidation range of $106,000 to $116,000 as buying power waned. This price movement demonstrates a lack of conviction from bulls, leading to decreased investor confidence and sentiment. The analysts also noted that long-term holders have begun selling, and institutions have not stepped in to buy, contributing to the price decline. Should Bitcoin fail to surpass the $116,000 level, selling pressure from long-term holders could persist, further hindering any potential rebound.
Demand Dynamics and Potential Catalysts
Despite the current bearish trend, some experts remain optimistic about a potential rebound. Historically, Bitcoin has recorded an average November increase of 41.78% since 2013. Trader Dave Weisberger suggests that Bitcoin's fundamentals remain strong and that the current situation is constructive compared to previous up cycles.
Bitfinex analysts believe that a shift in central bank tone or new liquidity injections could revive Bitcoin's price trend later in the year. The same holds true for institutions emerging with renewed interest, or news relating to ETF approvals, quickly adding the potential for fresh optimism into the market. Analysts also believe that any improvement in global liquidity or a rally in risk assets could lead to more positive trends in Bitcoin price.
Institutional Interest
Even with the price correction, institutional interest in Bitcoin remains. BlackRock, Fidelity, and ARK Invest have collectively poured nearly $493 million into BTC, signaling renewed confidence in the crypto asset. This continued institutional buying may indicate growing stability in the market and a potential turning point for mainstream adoption.
Concluding Remarks
While Bitcoin is currently facing headwinds and a potential period of consolidation, the underlying demand and strong fundamentals could lead to a recovery. Investors should remain cautious, closely monitoring macroeconomic signals, regulatory developments, and institutional activity.
