Crypto crash of November 2025: panic or opportunity? Ethical analysis

Introduction: fear returns to the crypto market

The cryptocurrency market has experienced a spectacular crash in recent days, erasing more than $1 trillion in valuation since October 6, 2025. Bitcoin fell below the symbolic $100,000 mark for the first time since late June, while Ethereum suffered a 20% drop in 48 hours, causing nearly $1 billion in liquidations.

Faced with this widespread panic, the ethical investor asks a crucial question: should we give in to fear and sell, or see this correction as a buying opportunity? This article analyzes the causes of this crash and offers a perspective based on Islamic finance principles to navigate this period of high volatility.

Anatomy of a crash: multiple causes

This crash is not the result of a single event, but a convergence of several factors that created a climate of fear and uncertainty.

Main factors

Whale massive selling: A whale (large holder) sold $1 billion worth of BTC, creating massive selling pressure.

Balancer hack: The $128 million hack of the Balancer DeFi protocol revived fears about DeFi security.

AI fears: Concerns about the overvaluation of AI-related stocks spread to the crypto market, considered a similar risk asset.

Reduced risk appetite: Faced with global economic uncertainty, investors are withdrawing from high-risk assets like cryptocurrencies.

Ethical perspective: what to do in the face of volatility?

Islamic finance offers us several principles to approach this situation with wisdom and serenity.

1. Avoid Gharar (excessive uncertainty)

Gharar, or excessive uncertainty, is to be avoided. Attempting to "time" the market by selling at the top and buying back at the bottom is a form of speculation akin to Gharar. No one can predict market movements with certainty.

Ethical advice: Don't sell in panic. Don't try to predict the bottom. Adopt a long-term strategy.

2. Patience (Sabr) and discipline

Investing is a marathon, not a sprint. Markets are cyclical, and corrections are healthy and necessary. Patience is a cardinal virtue for the investor.

Ethical advice: If you have invested in solid projects with sound fundamentals, keep your calm and discipline. Don't make hasty decisions based on emotion.

3. Dollar Cost Averaging (DCA) as a bulwark

DCA, or programmed investing, consists of investing a fixed amount at regular intervals, regardless of the asset's price. This strategy smooths out the purchase price and reduces the impact of volatility.

Ethical advice: DCA is an excellent strategy for the ethical investor. It eliminates speculation and emotion from the equation. If you believe in the long-term potential of your assets, a price drop is an opportunity to accumulate more at lower cost.

Strategies for the Muslim investor

1. Reassess your portfolio: Take advantage of this period to verify that your investments are still in line with your ethical principles. Get rid of projects without added value.

2. Strengthen your positions: If you have liquidity, it may be time to strengthen your positions in solid projects (Bitcoin, Ethereum, etc.) via DCA.

3. Avoid leverage: The massive liquidations on Ethereum remind us of the dangers of leveraged trading, which is forbidden in Islamic finance anyway (assimilated to an interest-bearing loan).

4. Diversify: Don't put all your eggs in one basket. Diversification is a golden rule in investing.

Conclusion: an opportunity for patient investors

This November 2025 crash, although spectacular, is not a first in the history of cryptocurrencies. For the ethical investor who adopts a long-term vision, this period of fear can turn into an investment opportunity.

By avoiding speculation, showing patience and discipline, and using strategies like DCA, it is possible to navigate this storm serenely and build a solid portfolio for the future.