The crypto market had a rough month in November. Bitcoin has dropped over 20 percent, losing almost 2 trillion dollars in market cap.
The crypto and stock market has been affected by fears over an impending AI bubble and possible US Federal Reserve rate cuts. Bullish sentiment prevails after Bitcoin showed a “death cross” On Nov. 15, the 50 day simple moving average dropped below the equivalent 200-day value.
Trading Economics data shows that global inflation among the major economies of the world slowed down in November. 17 members of G20 had lower monthly inflation, as part of an increasing global trend.
As the adoption of cryptocurrencies continues, regulators around the world are wrestling with taxation issues. Seven countries have updated their tax policy on cryptocurrencies.
Take a look at November’s numbers.
Seven countries consider new crypto tax rules
The Taxman comesth. The taxman is coming.
Changes to crypto tax laws began in seven jurisdictions around the world on November 1. The White House in the US has a new crypto tax code. began to review an Internal Revenue Service proposal To join the global Crypto-Asset Reporting Framework. The US Tax Service would be able to view the data of Americans who have crypto accounts abroad.
The left-wing Sumar Party, which forms part of Spain’s Socialist Party ruling coalition. proposed raising the top tax rate Crypto to 47%. This would replace current rates of savings at 30% and set flat taxes for corporations holders at 30%.
Switzerland decided to delay its new reforms The Brazilian government has set a deadline of 2027. Brazil is considering a tax on international Bitcoin transfers. Japan considers crypto transfers a 20% crypto tax rateThis is a decrease from 50%.
France turning the screws on crypto With a potential “unproductive wealth” Tax classification in the UK simplifying decentralized finance tax reporting.
Bitcoin prices fall by over 20% in a month
Bitcoin dropped from $110,000 down to $91,000 at publication time. BTC price reached its lowest point on November 21st at $82,600.
Bitcoin dipped below $100,000 amid the brutal sell-off — the first time since May 2025. Deutsche Bank analysts said The current crash, where the market cap fell below $1.8m, is especially acute.
“Unlike prior crashes, driven primarily by retail speculation, this year’s downturn has occurred amid substantial institutional participation, policy developments, and global macro trends.”
Analysts are skeptical about the performance of Bitcoin in November, despite it being one of the lowest for years. are optimistic. Justin d’Anethan of private markets advisor Arctic Digital told Cointelegraph previously that currency decline could be beneficial.
He stated that the market dynamics is changing “as institutions finally came in a meaningful way, changing the pace, breadth and timing of crypto price action.”
The government and large companies own 17 percent of Bitcoin.
Many companies, financial institutions, and governments now hold Bitcoin directly. By the end of last November, companies and governments owned 17% of 21 million BTC.
Increased ownership of BTC is a result of the proliferation of Bitcoin treasury firms and exchange traded products. Over 7% of Bitcoin is held by exchange-traded products.
Both public and private firms are now including Bitcoin in their financial statements. Following the success of Michael Saylor’s Bitcoin Buying Strategy, corporations and private companies are now trying to duplicate it. In November 2017, 357 businesses had purchased Bitcoin. had Bitcoin in their treasuries, according to BitcoinTreasuries.Net.
It is now more important than ever that large institutions have a greater influence on the Bitcoin market. Some have attempted to calm centralization fears. Nicolai Søndergaard, research analyst at crypto intelligence platform Nansen, previously told Cointelegraph:
“It doesn’t change Bitcoin’s fundamental properties. The network remains decentralized even if custody becomes more centralized.”
Inflation rates drop for 17 G20 countries
Inflation exploded in the early 2020s as the world struggled to deal with COVID-19 and supply chain disruptions. The Russian invasion of Ukraine, along with the Israel-Gaza conflict, also contributed. Although inflation is still high in many countries, it has slowed significantly in the 17 G20 nations in November.
Inflation can be a good indicator of cryptocurrency adoption. Inflation is a key indicator for cryptocurrency adoption.
Related: Fiat inflation drives crypto adoption across the globe
The Bolivian minister of Economy, Jose Gabriel Espinoza announced on Nov. 25 that banks will be allowed to provide crypto custody, and digital currency can function as legal tender in savings accounts. Stablecoins have gained significant popularity in Bolivia — some shops even list prices in Tether’s USDT (USDT).
Market capitalization of stablecoins down by $2 billion
Market capitalization for stablecoins grew consistently over the past 26 months. In November, however, the amount of money on the markets decreased by just $2 billion. This is a slight decrease, which was slightly above 0.62 percent. It was the biggest drop in stablecoin market capitalization since the FTX crash of November 2022.
The USDT dominates the market by about 0.50%. Ethena USDe dropped by 26,8%. The total value of Ethena fell quickly after traders stopped using looping strategies.
BitGet, a crypto-exchange company also reported a report stated Concerns about the stability of stablecoins, along with increased regulation, has cooled interest in stablecoins.
Magazine: When privacy and AML laws conflict: Crypto projects’ impossible choice
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Source: cointelegraph.com
