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Bitcoin Updates: Crypto Market Loses $2 Billion—Is This a Fresh Start or the Beginning of a Lengthy Downturn?

Bitcoin Updates: Crypto Market Loses $2 Billion—Is This a Fresh Start or the Beginning of a Lengthy Downturn?

Bitget-RWA2025/11/24 03:04
By:Bitget-RWA

- Crypto markets crashed on Nov. 21, 2025, wiping $2B in leveraged positions as Bitcoin fell to $82,000, its lowest since April. - The sell-off was driven by macroeconomic pressures, ETF outflows, and algorithmic liquidations exacerbating price dislocations. - Over 396,000 traders lost $1.78B in long positions, while exchanges underreported liquidations due to partial reporting practices. - Institutional analysts warn of deeper structural risks, with some predicting further 50% declines to flush out specul

The cryptocurrency market saw a sharp downturn on November 21, 2025, as nearly $2 billion in leveraged trades were wiped out in just one day,

. (BTC) dropped to $82,000—its lowest since April—while other major coins such as (SOL) and (ETH) also suffered double-digit percentage losses. This steep decline, fueled by short-term investors selling off and shrinking liquidity, has reignited concerns about the underlying fragility of the crypto sector.

This wave of liquidations was set off by a mix of global economic factors and internal market forces.

eased worries about a recession but made a December rate cut less likely. At the same time, on November 20—their second-highest outflow since inception—driven by redemptions from Wall Street. Experts observed that automated liquidation mechanisms on leading exchanges worsened the price swings.

The largest single liquidation—a $36.78 million BTC-USD trade—took place on Hyperliquid, a decentralized platform

. This happened as the broader sell-off dragged the total crypto market value below $3 trillion for the first time since spring.
Bitcoin Updates: Crypto Market Loses $2 Billion—Is This a Fresh Start or the Beginning of a Lengthy Downturn? image 0
over the 24-hour period, with long trades making up $1.78 billion of the total losses.

Despite the widespread losses, some investors are spotting new openings.

returned to the market, opening a $37 million leveraged position with a liquidation threshold near $75,500. Another major player invested $377 million to buy more Bitcoin, suggesting ongoing faith in its long-term value. , who previously predicted Bitcoin’s 2018 crash, cautioned that BTC could drop as low as $58,000—a level that would challenge the True Market Mean at $81.9K.

The recent turmoil has also highlighted flaws in the crypto market’s infrastructure.

only disclose partial or delayed data on liquidations, leading some analysts to suspect that the true scale of forced selling is underestimated. described the market as being in a “capitulation phase,” with the Fear & Greed Index plunging to an extreme reading of 11. He pointed out that Bitcoin’s drop below the Active Investors Mean has now shifted attention to the True Market Mean, a crucial support area.

Large institutional investors, however, remain wary.

cautioned that the next bear market could be even harsher, as inexperienced investors pour money into spot crypto and ETFs without fully grasping the risks. He suggested that the market might need to fall another 50% to clear out speculative buyers before a solid base can be established. remarked that the sell-off of decentralized asset tokens (DATs) is just beginning, and the same forces that drove prices up could accelerate the decline.

The Trump family’s crypto assets have also suffered. Their

has lost 25% of its value since August, and Eric Trump’s Bitcoin mining business has seen its worth cut in half from its peak. Altogether, the family’s crypto-related holdings have dropped to $6.7 billion from $7.7 billion in early September, mirroring the broader market downturn.

Uncertainty around regulations continues to be a major issue.

, which aims to offer legal safeguards for , is viewed as vital for attracting institutional investors. XRP’s recent decline, despite ETF activity, is believed to be the result of institutions strategically accumulating at lower prices.

As the market faces these headwinds, the outlook remains unclear. Some believe the wave of liquidations could help reset the market by removing excess speculation, while others warn that deeper structural problems remain unresolved. The next few weeks will reveal whether institutional capital can return to steady the market, or if this downturn signals the onset of a longer bear phase.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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