Bitcoin News Today: Short Sellers Bear Brunt as $341M Crypto Liquidations Trigger Volatility Surge

The crypto market experienced a dramatic 24-hour liquidation event totaling $341.85 million as Bitcoin surged past $106,000, triggering cascading losses for leveraged traders. The spike in liquidations—driven by a mix of short-covering and long-position collapses—highlighted the fragility of leveraged trading in a volatile market. Short sellers, who had bet on Bitcoin's continued decline, bore the brunt of the losses, with $106.75 million wiped out compared to $9.22 million for long positions, according to a Yahoo Finance report. The largest single liquidation, a $18.96 million order on Hyperliquid, underscored the systemic risks of high leverage ratios, as noted in the same report.

The price rebound defied earlier bearish sentiment. Traders had anticipated Bitcoin would extend its downtrend after ETF outflows and a 40-day U.S. government shutdown created liquidity concerns, as reported by Yahoo Finance. However, the Senate's approval of a funding bill to end the shutdown injected optimism, pushing Bitcoin to a 3.93% gain in 24 hours, according to a Crypto.news update. The resolution also alleviated regulatory uncertainty, with analysts noting it could catalyze a short-term relief rally, as covered in that update.

Leverage-driven volatility persisted throughout November 2025, with $20 billion in crypto derivatives liquidated as Bitcoin fell below $100,000, according to a Bitget report. Platforms like Hyperliquid and Aster, offering up to 1,001:1 leverage, faced scrutiny for exacerbating price swings through automated stop-loss mechanisms, the Bitget report noted. Ethereum, which saw $92.01 million in liquidations, also hit four-month lows as cascading losses spread across the market, the Bitget report added.

Investor behavior reflected a shift in risk appetite. While U.S. crypto funds recorded $1.17 billion in outflows, European markets showed resilience, with Germany and Switzerland posting inflows, as reported by Crypto.news. Altcoins like Solana bucked the trend, attracting $118 million in inflows as institutional demand grew, according to the Crypto.news update. Meanwhile, short Bitcoin ETPs gained $11.8 million in inflows—the highest since May—as traders hedged against further declines, as covered in the Crypto.news update.

Regulatory developments added to the uncertainty. The CFTC's proposed leveraged spot crypto products and the Senate's draft bill to clarify SEC/CFTC roles aimed to bring order to the derivatives market, as noted in the Bitget report. However, experts warned that structural imbalances—such as unregulated leverage and fragmented oversight—remain unresolved, the Bitget report stated.

The broader crypto market cap rebounded to $3.56 trillion, a 3.91% increase, as confidence returned, according to Yahoo Finance. Yet the Crypto Fear & Greed Index remained in "Fear" territory at 26, reflecting lingering caution, according to the Crypto.news update. Analysts cautioned that while Bitcoin's $106,000 level offered short-term optimism, sustained gains would depend on the Federal Reserve's policy trajectory and geopolitical stability, as reported in the Crypto.news update.