Bitcoin News Today: Leverage and ETF Exodus Trigger $2B Crypto Crash as Regulators Diverge

The cryptocurrency market experienced a severe correction on November 21, 2025, with leveraged positions wiping out over $2 billion in 24 hours and Bitcoin (BTC) falling to $81,050-the lowest level since April 2025. Coinglass reported 391,000 traders liquidated, with long positions accounting for $1.78 billion of the total $1.91 billion in losses. Ethereum (ETH) plummeted 10% to $2,743, while other major tokens like Solana and XRP lost 20%-35% from their November highs. The Crypto Fear & Greed Index hit 11, matching its lowest reading since the FTX collapse in 2022.

The selloff was exacerbated by outflows from Bitcoin ETFs, with BlackRock's IBIT alone recording $2.47 billion in redemptions in November. Analysts attributed the downturn to macroeconomic uncertainty, over-leveraged long positions, and the natural ebb of the four-year Bitcoin issuance cycle. The total crypto market cap dropped 6% in 24 hours, slipping below $3 trillion for the first time in five months.

Amid the turmoil, China's central bank reaffirmed its stance that cryptocurrencies remain illegal, signaling a potential crackdown on digital assets. This regulatory posture contrasts with recent U.S. developments, where lawmakers have criticized the Biden administration's "Choke Point 2.0" approach, accusing regulators of stifling innovation. Meanwhile, China's focus on green energy expansion-announced by Minister of Industry and Information Technology Li Lecheng-highlights its strategic pivot toward low-carbon manufacturing, though this shift appears unrelated to the crypto sector's challenges.

The market's volatility underscores systemic risks tied to leveraged trading and regulatory ambiguity. Experts note that the recent Bitcoin ETF approval in early 2025, while injecting institutional capital, also heightened exposure to macroeconomic shifts. For now, traders are waiting for signs of stabilization, with many eyeing ETF inflows and positive macroeconomic news to reverse the current trajectory.