The main reasons that led the cryptocurrency market, especially (Bitcoin) and $ETH (Ethereum), to drop recently (especially in November 2025), and whether this is a temporary drop (correction) or the beginning of a phase of 'ongoing weakness' — and how long might it last:

✅ Why did cryptocurrencies drop now:

1. A global risk-off sentiment

There is a tendency among current investors to shy away from 'risk assets' (such as cryptocurrencies or tech stocks) and move towards safer assets, amid increasing economic uncertainty — which has pressured cryptocurrency prices.

This decline in “risk appetite” is often linked to fears about inflation, interest rates, or the prospects of weak growth, which makes investors less inclined to tolerate the volatility of cryptocurrencies.

2. Rising interest rates and uncertainty in monetary policy (especially in the United States)

The expectation that the Federal Reserve may not lower interest rates soon has negatively affected high-risk assets, including cryptocurrencies.

Weak probability of interest rate cuts means that the cost of “cheap money” decreases — making the interest on bonds or traditional assets more attractive compared to cryptocurrencies.

3. Institutional outflows from the market — correction after a rapid rise

After a strong rise over the past months driven by institutional flows into Bitcoin index funds, some of these institutions began to take profits and withdraw liquidity, creating significant selling pressure.

This “correction” by major players (and not just retailers) means that the drop is not a result of individual panic but rather a change in a massive investment portfolio.

4. Liquidity shock

With institutions withdrawing and a surge in selling, liquidity in the cryptocurrency market has declined — meaning that demand is low compared to supply, which deepens the drop.

Weak liquidity makes prices more susceptible to large buy or sell movements, increasing volatility — which we are witnessing now.

5. Weak “psychological/emotional conviction” (Sentiment) among investors

From the perspective of some institutions (like Deutsche Bank) — a large part of Bitcoin's value is based on “faith in the future” rather than on tangible intrinsic value. As confidence declines, the “Tinkerbell effect” fades.

This explains why the drop in Bitcoin does not always reflect on clear economic indicators — the market reacts to emotions and future expectations.

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But is the drop a “temporary correction” or a “continuous weakness”? And when will it end?

Some analysts (including senior officials at Binance) described this drop as a “healthy correction” after a rapid rise — meaning the market is experiencing a natural profit-taking.

However — on the flip side — analysis from entities like Deutsche Bank suggests that this time is “different” from previous crashes driven by small speculations: now the issue concerns institutional flows, liquidity, and changes in the macroeconomic climate.

This means that stability or the next "jump" requires two key things:

1) Improvement in the macroeconomic climate (reduced risks, perhaps interest rate cuts, economic stability)

2) Renewed confidence from institutions and investors — which may take several months.

Therefore, saying that the drop is a “temporary correction” is possible — but it cannot be ruled out that it is the beginning of a longer period of weakness if liquidity remains low, institutional demand declines, and we see more uncertainty in monetary policy.

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🎯 What does this mean for you as an investor now (and since you are interested in Binance and following events like #NODEBinanceTGE )

If you are thinking long term — this might be an opportunity to reconsider entry (a “value” entry rather than speculative).

If you are following “events/rewards” at Binance (like your experience with “write and earn”) — it is important to monitor liquidity, global policy expectations, as fluctuations may affect the value of prizes or event tokens.

Try to avoid entering driven by “FOMO” (fear of missing out)

May) — because the market is unstable now, and it might take time before it rebounds.