Bitcoin News Today: Crypto's $2B Rout: Reset or Prolonged Bear Market?

The crypto market experienced a dramatic sell-off on Nov. 21, 2025, with nearly $2 billion in leveraged positions liquidated within 24 hours, according to Coinglass data. Bitcoin (BTC) fell to $82,000, its lowest level since April, while altcoins like Solana (SOL) and Ethereum (ETH) also posted double-digit declines. The collapse, driven by short-term holder capitulation and thinning liquidity, has reignited debates about the structural vulnerabilities of the crypto ecosystem.

The liquidation wave was triggered by a combination of macroeconomic pressures and internal market dynamics. U.S. jobs data showing a surprise 119,000-job increase softened recession fears but complicated expectations for a December rate cut. Meanwhile, Bitcoin ETFs saw $903 million in net outflows on Nov. 20-the second largest since their launch-fueled by Wall Street redemptions. Analysts noted that the sell-off intensified as algorithmic liquidation processes on major exchanges exacerbated price dislocations.

The most significant single liquidation event-a $36.78 million BTC-USD position-occurred on Hyperliquid, a decentralized exchange according to market analysis. This came amid a broader market rout that pushed the total crypto market cap below $3 trillion for the first time since spring. Over 396,000 traders were wiped out in the 24-hour period, with long positions accounting for $1.78 billion of the losses.

Despite the carnage, some market participants see opportunity. A crypto whale, dormant for 18 months, reactivated to open a $37 million leveraged BTC position with a liquidation price around $75,500. Another whale spent $377 million to accumulate Bitcoin, signaling confidence in the asset's long-term potential. Veteran trader Peter Brandt, known for predicting the 2018 Bitcoin crash, warned that BTC could fall as low as $58,000-a level that would test the True Market Mean at $81.9K.

The collapse has also exposed weaknesses in the crypto market's infrastructure. Exchanges like Binance and OKX only provide partial or delayed liquidation reporting, leading analysts to believe the actual scale of forced unwinds is underreported. BRN's Timothy Misir described the market as in "capitulation mode," with the Fear & Greed Index hitting an extreme fear level of 11. He noted that Bitcoin's break below the Active Investors Mean now focuses attention on the True Market Mean, a critical support level.

Institutional players, however, remain cautious. Alliance DAO co-founder QwQiao warned that the next bear market could be worse than expected, driven by "dumb money" buying spot crypto and ETFs without understanding the risks. He argued that the market may need another 50% drop to flush out speculative buyers before a strong foundation forms. Placeholder's Chris Burniske added that decentralized asset token (DAT) selling is only beginning, and the same forces that pushed prices up will unwind sharply on the way down.

The Trump family's crypto fortunes have also taken a hit. Their memecoin value has fallen by a quarter since August, while Eric Trump's Bitcoin mining venture has lost half its peak value. The family's overall crypto-related wealth has declined to $6.7 billion from $7.7 billion in early September, reflecting the broader market's struggles.

Regulatory clarity remains a key concern. The Clarity Act, which would provide legal protections for XRP, is seen as essential for institutional adoption. XRP's recent dip, despite ETF activity, has been attributed to strategic accumulation by institutions aiming for lower prices.

As the market grapples with these challenges, the path forward remains uncertain. While some see the liquidation event as a necessary reset to reduce speculative excesses, others caution that deeper structural issues persist. The coming weeks will likely test whether institutional flows can reappear to stabilize the market-or if the current downturn marks the start of a prolonged bear cycle.

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