Bitcoin News Today: Crypto Market Makers' Collapse Fuels 8-Day Fear Streak as Liquidity Crisis Worsens

The Crypto Fear & Greed Index, a key barometer of market sentiment, climbed to 19 on November 19, 2025, remaining firmly in "Extreme Fear" territory for eight consecutive days-the longest such streak in over three years. Despite this slight upward tick from recent lows, the index underscores a market gripped by panic, with investors bracing for further volatility amid a wave of liquidations, regulatory scrutiny, and failed institutional bets. The index, which ranges from 0 (maximum fear) to 100 (maximum greed), has historically signaled buying opportunities at extreme fear levels, but this time, the context is uniquely dire.

The prolonged fear reflects a perfect storm of factors. U.S. spot crypto ETFs have hemorrhaged over $420.8 million in net outflows since October, with Bitcoin ETFs suffering the brunt of the exodus (-$372.8M). Solana, however, has defied the trend, maintaining positive inflows as institutional investors pivot to smaller-cap assets. Meanwhile, market makers have been crippled by a liquidity crisis since mid-October. A stablecoin mispricing triggered automatic deleveraging across exchanges, wiping out nearly 2 million accounts and leaving traders with amplified price swings. "CRYPTO DIDN'T BREAK-MARKET MAKERS DID," noted Tom Lee, highlighting how the sector's structural weaknesses have exacerbated declines.

Regulatory and operational headwinds compound the crisis. Malaysia, for instance, is cracking down on illegal crypto mining after estimating a $1 billion loss to its national grid. The country's energy minister warned that unregulated mining operations are straining infrastructure, prompting a crackdown that could ripple across Southeast Asia's crypto ecosystem. Similarly, Bitfury, a Bitcoin mining pioneer, announced a $1 billion technology investment fund, signaling a strategic retreat from mining amid plunging profitability.

High-profile casualties underscore the market's fragility. The Trump family's crypto-linked ventures have lost over $1.3 billion in value since September, with their Bitcoin hoard, memecoins, and mining stakes all collapsing. Donald Trump Jr. and Eric Trump's Bitcoin mining firm, American Bitcoin, shed $330 million in value, while their memecoin lost 25% since August. "People who buy dips and embrace volatility will be the ultimate winners," Eric Trump insisted, though analysts argue the family's diversified revenue streams-such as token sales and affiliated ventures-insulate them from retail investors' losses.

Historical patterns suggest relief may come swiftly once liquidity normalizes. The current market structure, with spot ETFs and institutional rails in place, is far stronger than during the 2022 crash. Experts estimate a six-to-eight-week timeline for stabilization, after which buying pressure could resume. For now, however, the fear index remains a stark warning. As one analyst put it, "The system didn't break, but the pain is real-and it's only just begun."