Is the November 2025 Crypto Crash Worse Than the FTX-Era Bear Market?

The cryptocurrency market lost over $1.3 trillion in value by November 2025. Bitcoin dropped from $126,000 to below $85,000 in a few weeks. 

But how does this compare to the FTX-driven meltdown of 2022, which shook the foundation of the digital asset space?

Market Cap Losses and Price Drawdowns

Market analysts now debate whether this year’s sharp reversal is more damaging than the industry-wide collapse triggered by FTX’s bankruptcy three years ago. 

On paper, this month’s sell-off is massive. In practice, it’s more of a sharp correction than a systemic crisis.

Between October and November 2025, crypto’s total market cap dropped about 30%, falling from a record $4.2 trillion to under $3 trillion. Bitcoin shed nearly 32% in value, while Ethereum lost over 40%.

However, these numbers don’t match the scale of 2022. 

After FTX’s implosion, the market plunged 73% from its 2021 highs. Bitcoin bottomed out at $15,500, losing over three-quarters of its value. Ethereum fell more than 80% to below $900.

Liquidations and Trading Behavior

Liquidations in 2025 surpassed previous records. In October, over $19 billion in leveraged crypto positions were wiped out in a single day. That’s nearly ten times more than the worst day during the 2022 crash.

Yet, in 2022, traders also faced systemic shocks. The failure of FTX, Celsius, Voyager, and 3AC triggered a cascade of margin calls and frozen funds. 

Although 2025 saw more liquidations, the impact was largely confined to price volatility and didn’t trigger platform-wide insolvencies.

Institutional and Public Market Impact

The FTX collapse shattered trust across the industry. Core Scientific filed for bankruptcy. Crypto lenders vanished. Public companies like MicroStrategy and Coinbase lost over 80% of their stock value.

By contrast, the latest crypto crash has seen no major bankruptcies among listed firms. ETFs did suffer record outflows—over $3.7 billion since October. But they remained functional. 

Companies like MicroStrategy even added to their holdings, signaling confidence rather than crisis.

Sentiment and Macro Backdrop

Both periods triggered extreme fear. In November 2025, sentiment indices dropped to their lowest levels in a year. However, investors weren’t blindsided.

In 2022, the FTX collapse came as a shock. Billions in customer assets vanished. The resulting fear was deeper and more corrosive. Institutional investors froze activity. Regulators launched global crackdowns.

Meanwhile, this month, investors pulled back—but stayed engaged. ETF outflows were orderly. Hedge funds hedged rather than fled. Regulatory conditions, while uncertain, were not crisis-driven.

FTX Collapse Remains the King of All Crypto Bear Markets

The 2025 crypto crash is sharp, but contained. It erased over a trillion dollars in value and triggered record liquidations. However, the market structure held.

The 2022 collapse was deeper, longer, and systemically damaging. It wiped out fragile firms, froze customer assets, and nearly broke institutional trust.

While painful, November 2025 is not worse than the FTX-era collapse. It’s a high-stakes correction—not a foundational crisis.