Hyperliquid News Today: Crypto Liquidations Fuel Altseason Fears as 2025 Stimulus Hopes Emerge

Crypto Liquidations Surge Amid Market Volatility, Fueling Fears of Altseason 2025

The cryptocurrency market experienced a wave of liquidations totaling $801 million in a single day, with long positions accounting for over $500 million of the losses, according to Coinpedia. The selloff, which occurred during the late North American trading session on November 17, pushed the total crypto market cap below $3.12 trillion -a decline of 2% in a 24-hour period. More than 154,000 traders were wiped out, exacerbating the bearish sentiment that has gripped the market for weeks.

The liquidations have intensified fears of further capitulation, with the Binance-backed CoinMarketCap (CMC) Crypto Fear and Greed Index plummeting to 17 - one of the lowest levels of the year. Over the past 41 days, the market has shed over $1.1 trillion in value, driven by the collapse of leveraged long positions. Analysts attribute the turmoil to a combination of macroeconomic pressures and the unwinding of speculative bets.

Despite the carnage, some market observers see a potential silver lining. CMC's Altcoin Season Index currently stands at 30/100, but analysts point to upcoming global stimulus measures as catalysts for a bullish altseason in 2025. The U.S. is preparing $2,000 stimulus checks, while Japan and China are set to deploy $110 billion and $1.4 trillion in economic support packages, respectively. The Federal Reserve's planned end to quantitative tightening (QT) on December 1 and Canada's restart of its quantitative easing program are also expected to inject liquidity into the market.

The liquidation crisis has not been limited to retail traders. A high-stakes gambler was liquidated for $168 million on HyperLiquid after shorting Bitcoin, XRP, and ZEC ahead of a market rebound. Despite the wipeout, the trader immediately reinvested in leveraged shorts on GMX, a move that mirrors past blowups from aggressive market participants. Meanwhile, investor Huang Licheng maintained a 25x leveraged ETH long position valued at $5.32 million, though the trade is currently down 23.98% with a liquidation price near $2,908.

The liquidation shock has also tested the resilience of crypto derivatives platforms. HyperLiquid's native token, HYPE, rebounded 6% in 24 hours following a $96.5 million liquidation event, the largest single-day cascade in crypto futures history. Despite the chaos, on-chain metrics suggest growing bullish sentiment: whale accumulation has increased, open interest in HYPE contracts rose from $1.52 billion to $1.71 billion, and technical indicators point to a potential price breakout to $48–$54.

Industry reports highlight broader structural shifts. Galaxy Research noted that crypto leverage hit a record $86.3 billion in Q3, driven by decentralized finance (DeFi) innovations like Aave and Fluid on Plasma. While the leverage-induced selloff in late Q3 raised concerns about systemic risk, Galaxy emphasized that most positions were mechanically de-risked through exchange auto-deleveraging systems.

As the market grapples with volatility, institutional demand for Bitcoin remains robust. Bitwise CIO Matt Hougan recently dismissed bear market fears, arguing that institutions are increasingly viewing Bitcoin as a service rather than an investment. Meanwhile, regulatory developments, including the U.S. Senate's impending vote on a crypto market bill, could further shape the landscape in 2025.