November delivered one of the harshest pullbacks for crypto in years. Bitcoin ended the month down more than 20%, briefly losing the $100,000 level for the first time since May, while stablecoin capitalization contracted for the first time since 2022.Below is a data-driven look at what happened across Bitcoin, stablecoins, inflation trends and global crypto taxation.Global Regulators Move to Update Crypto Tax RulesSeven jurisdictions advanced or proposed changes to their digital-asset tax frameworks in November, reflecting growing institutional adoption and pressure to clarify reporting obligations.Key developments included:United States: The White House began reviewing an IRS proposal to join the global Crypto-Asset Reporting Framework, allowing U.S. authorities access to foreign crypto account data.Spain: The Sumar party proposed increasing the top tax rate on crypto gains to 47%, replacing the current 30% savings rate.Switzerland: Delayed its new crypto tax reforms until 2027.Brazil: Weighed the introduction of taxes on international crypto transfers.Japan: Discussed reducing its top crypto tax rate to 20% from the current 50%.France: Considered labeling crypto as “unproductive wealth,” affecting tax treatment.United Kingdom: Advanced efforts to simplify DeFi tax reporting.Regulators appear increasingly aligned on treating crypto as a mainstream asset class requiring clear reporting and taxation standards.Bitcoin Drops Over 20% Amid Fears of Rate Cuts and a Tech BubbleBitcoin traded from $110,000 down to roughly $91,000, marking its steepest November decline since 2019. It bottomed at $82,600 on Nov. 21, according to CoinGecko.Market pressure intensified on Nov. 15 when Bitcoin formed a death cross, with the 50-day simple moving average crossing below the 200-day average — a long-term bearish signal.Deutsche Bank analysts described the drawdown as unusually aggressive:“Unlike prior crashes driven primarily by retail speculation, this year’s downturn has occurred amid substantial institutional participation, policy developments and global macro trends.”The decline coincided with concerns about lower interest rates, shrinking global liquidity and fears of a potential bubble in the AI sector.Despite the turbulence, several analysts argued the shift could ultimately be healthy.Justin d’Anethan of Arctic Digital said institutional participation is fundamentally changing how Bitcoin reacts to macroeconomic cycles:“Institutions finally came in a meaningful way, changing the pace, breadth and timing of crypto price action.” Institutions and Governments Now Hold 17% of All BitcoinA growing share of Bitcoin supply is being absorbed by public companies, private firms and sovereign entities adopting BTC as a treasury asset.As of late November:17% of the total Bitcoin supply is held by companies and governments.ETFs alone control more than 7% of all outstanding BTC.357 companies hold Bitcoin on their balance sheets, according to BitcoinTreasuries.net.Centralization concerns continue to surface, but analysts argue the network’s decentralization remains intact even as custody becomes more concentrated.Nansen research analyst Nicolai Søndergaard said:“It doesn’t change Bitcoin’s fundamental properties. The network remains decentralized even if custody becomes more centralized.”Inflation Slows Across 17 G20 EconomiesInflation cooled across 17 of the G20 nations in November, continuing the disinflation trend that began earlier this year.High inflation has historically accelerated crypto adoption, especially in emerging markets where local currencies face stronger devaluation pressures.Recent examples include:Bolivia, which will allow banks to offer crypto custody and treat digital assets as legal tender for savings products.Growing use of USDT in South America, where shops increasingly display prices in stablecoins.Stablecoin Market Cap Shrinks by $2 BillionStablecoins saw their first meaningful contraction in over two years. Market capitalization fell by roughly $2 billion, a 0.62% decline, marking the sharpest drop since the collapse of FTX in November 2022.Notable shifts included:USDT dominance rose by 0.5%, strengthening its lead.Ethena’s USDe suffered a 26.8% decline in market cap as traders exited looping strategies.Total value locked (TVL) on Ethena fell sharply as investors derisked.A Bitget research note said concerns around stablecoin safety and heightened regulatory scrutiny have softened demand.Bottom LineNovember marked one of the most challenging months for cryptocurrencies in 2025. Bitcoin suffered its largest monthly decline in years, stablecoin demand weakened and regulatory pressure increased globally.Still, analysts widely agree the downturn was driven by macro positioning — not structural weakness. With inflation easing and institutional participation growing, the market enters December with caution, but not capitulation.
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