Bitcoin News Today: As Bitcoin Crumbles, Altcoins Defy Downtrend in $226M Crypto Shakeout

In the past 24 hours, cryptocurrency markets experienced a record $226 million in liquidations, triggering a long and short squeeze that reshaped trading dynamics. The selloff, driven by a combination of ETF outflows, thin liquidity, and aggressive leverage unwinds, saw Bitcoin (BTC-USD) and Ethereum (ETH-USD) bear the brunt of the losses, while altcoins like XRP and ZEC staged rebounds amid signs of buyer exhaustion.

Bitcoin, which had plunged into "extreme oversold territory" on the relative strength index (RSI), rebounded from lows near $84,173 to trade near $86,466 by Sunday. The RSI dip below 30-a level historically associated with short-term recoveries-suggested oversold conditions, with analysts noting similar patterns in 2023 and March 2025 preceding rebounds. According to CoinDesk, the $206 million in weekend liquidations underscored the exhaustion of sellers, though the broader market remained fragile. Total crypto capitalization dipped below $3 trillion for the first time in five months before stabilizing at $2.95 trillion.

The liquidation wave extended to leveraged positions, with longs accounting for $1.78 billion of the $1.91 billion in losses reported by Coinglass. Bitcoin alone saw $929 million in long-position closures, while Ethereum lost $403 million. High-profile traders, including the "Anti-CZ Whale," faced multi-million-dollar losses, with one Hyperliquid position liquidated for a $36.78 million loss. The selloff coincided with a $3.5 billion outflow from Bitcoin ETFs in November, the largest monthly withdrawal since February, as institutional accumulation paused following October's peak.

Despite the volatility, altcoins like XRP and ZEC surged, with ZEC extending its year-to-date rally to 14% and XRP rising 7.7%. The gains were fueled by reduced selling pressure and a shift in on-chain behavior, as mid-tier "whale" wallets increased by 0.47% since November 11. Meanwhile, stablecoin liquidity-historically a buffer for crypto markets- contracted by $4.6 billion since November 1, exacerbating volatility as fewer fiat cushions existed to absorb sell-side pressure.

The market's correction highlights a liquidity reset, with analysts estimating that Bitcoin now requires $1 billion in weekly inflows to regain 4% of its value-a threshold far below current demand. While institutional inflows of $336 million into Ethereum ETFs provided some support, the broader ecosystem remains vulnerable to macroeconomic shifts and competition from high-yield traditional markets.