Bitcoin News Today: Trader's $33M ETH Bet Defies $1.1B Liquidation Wave as Crypto Markets Test Bear Threshold

The cryptocurrency market experienced a dramatic reversal last week as a prominent trader, widely recognized for previously navigating market troughs in Bitcoin (BTC) and Ethereum (ETH), liquidated a $7.3 million position only to re-enter with a $33 million long ETH bet. This move unfolded amid broader market turbulence, with over $1.1 billion in liquidations reported on November 14, 2025, marking the most severe episode of forced exits since the 2022 FTX collapse.

The liquidation wave saw long positions bear the brunt of the losses, with $973 million wiped out compared to $131.37 million in short liquidations. The largest single liquidation-a $44.29 million BTC-USDT position on HTX highlighted the extreme leverage deployed by traders during the recent upswing. Exchanges like Hyperliquid and Bybit also reported significant outflows, with over $134.16 million and $122.57 million in long liquidations, respectively, over a four-hour period. Analysts attribute the sharp sell-off to a combination of high leverage and a sudden reversal in market sentiment, which caught many traders off guard.

The market's stress levels have drawn direct comparisons to the FTX era. Bitcoin's Relative Strength Index (RSI) has plunged to "massively oversold" territory, a condition not seen since the 2022 crash. Additionally, Bitcoin has fallen below its lower volatility band for the first time in three years, signaling severe distress. Market analyst Negentropic noted that the current environment mirrors the "down in the gutter" sentiment, observed during the FTX implosion, underscoring the psychological toll on traders.

The liquidation surge has pushed sentiment to historic lows, with over 246,000 traders forced to exit positions. This has reignited debates about whether the market is entering a new bear phase or merely experiencing a sharp correction. While the $1.1 billion in liquidations is substantial, it remains far below the record $19.16 billion in October 2025, which followed a US-China tariff announcement according to market analysis. Nonetheless, the current episode has intensified scrutiny of leveraged trading practices and risk management protocols across exchanges.

The trader's decision to re-enter with a $33 million ETH long position reflects a bet on a near-term rebound. Such moves highlight the cyclical nature of crypto markets, where rapid liquidations often precede new buying opportunities for those with deep pockets. However, with technical indicators flashing caution and retail sentiment at multi-year lows, the path forward remains fraught with uncertainty according to market analysts.