Bitcoin News Today: Fed's Hawkish Pivot Sparks $1B Crypto Liquidation Wave

The cryptocurrency market is experiencing one of its most severe selloffs in recent history, with over $1.1 billion in liquidations reported in a 24-hour period as of November 14, 2025. The bulk of the damage-$973 million-was concentrated in long positions, reflecting widespread optimism among traders that proved disastrous when prices reversed. This surge in liquidations, which forced over 246,000 traders out of their positions, has drawn stark comparisons to the FTX collapse of 2022, a crisis that reshaped the industry's risk landscape.

Bitcoin (BTC) has been at the epicenter of the turmoil, falling below $94,000 for the first time in 2025 and reaching an intraday low of $93,029 on November 17. The drop erased 10.6% of its value over seven days and left the asset nearly 25% below its all-time high of $126,000. The decline has been exacerbated by a shift in expectations around U.S. Federal Reserve policy. The CME FedWatch tool now shows a 43.9% probability of a December rate cut, down sharply from over 80% in early November. With inflation concerns resurfacing, traders are de-risking leveraged positions, triggering cascading liquidations that further deepen the downturn.

The market's technical indicators are flashing red. Bitcoin's RSI has plunged into oversold territory, a condition last seen during the FTX crisis. Additionally, the asset has broken below its lower volatility band, a sign of severe stress. Ethereum has also been dragged into the sell-off, dropping below $3,000 and compounding losses for investors who entered in 2025. Despite regulatory progress and pro-crypto rhetoric from the Trump administration, the disconnect between policy optimism and market performance has widened.

The Fed's hawkish pivot has compounded the pain. Earlier rate cuts failed to ignite demand, and the prospect of further tightening has stifled risk appetite. A $2,000 stimulus package announced by the administration briefly lifted sentiment but failed to reverse the broader trend. Analysts now question whether Washington will intervene more aggressively, such as accelerating regulatory clarity or a proposed crypto reserve framework, to stabilize the market.

The liquidation wave has also exposed vulnerabilities in leveraged trading. Platforms like HTX and Hyperliquid reported massive outflows, with the largest single liquidation-a $44.29 million BTC-USDT position-highlighting the scale of forced selling. Institutional outflows from Bitcoin ETFs and waning confidence in macroeconomic stability have further deepened the rout.

As the market grapples with its worst performance in months, the debate centers on whether this is a bear market reemergence or a sharp correction. With the Fed's stance uncertain and regulatory momentum faltering, investors are left wondering how long the bleeding will continue.