Bitcoin News Today: Structural Weaknesses Spark $3T Crypto Crash Amid Speculative Panic

The cryptocurrency market endured a historic collapse on November 21, 2025, with nearly $1.93 billion in liquidations wiping out $3 trillion in market value as Bitcoin (BTC) and Ethereum (ETH) plummeted amid unexplained volatility. The selloff, triggered by a combination of speculative panic and structural fragility, saw Bitcoin sink to $87,000 while the total crypto market cap fell below $2.95 trillion - a level not seen in five months.

The crash unfolded rapidly, with the S&P 500 dropping 190 points in under an hour before the U.S. Labor Department's employment reports were even released. Analysts pointed to extreme sentiment swings rather than macroeconomic catalysts as the primary driver. "This is pure liquidation chaos-either someone knows something we don't, or the market has officially lost its mind," one trader tweeted, summarizing the disarray. Over 391,164 traders were liquidated in 24 hours, with long positions accounting for $1.78 billion of the losses. Bitcoin alone saw $929 million in long-position liquidations, while Ethereum lost $403 million.

XRP, already reeling from a 15% weekly drop, failed to gain traction despite the launch of multiple spot ETFs. Bitwise's XRPC ETF debuted with $22 million in trading volume and $105 million in inflows, while Canary Capital's XRPC ETF set a record with $59 million in first-day volume. Yet XRP's price fell to $1.92, as whales dumped 200 million tokens in the first 48 hours post-launch. Analysts warned that institutional flows might take until 2026 to materialize, delaying any meaningful impact on Ripple's price.

The turmoil exposed deep structural weaknesses in crypto markets. Solana fell nearly 50% year-to-date, while Bitcoin and Ethereum dropped 12% and 25–35% respectively over 60 days. "The market structure still needs major improvement," one report noted, emphasizing the need for clearer regulations like the Clarity Act to stabilize long-term participation.

Amid the chaos, a UK-led operation dubbed "Operation Destabilise" seized $33 million in cash and crypto tied to a global money laundering network facilitating Russian sanctions evasion. The NCA highlighted how criminal groups convert drug trade profits into crypto to fund the Ukraine war, operating in at least 28 UK cities.

The collapse also triggered corporate fallout. Rental Coins, a Brazilian crypto firm, filed for Chapter 15 bankruptcy in the U.S. to recover assets from a pyramid-scheme fraud. The company's estate aims to trace crypto transactions and reclaim funds lost to U.S.-based investors.

As markets grapple with the aftermath, experts remain divided. While some see a short-term buying opportunity, others warn of deeper bearish trends. "The next bear market could be far worse," Alliance DAO co-founder QwQiao cautioned, predicting a 50% drop needed to flush out speculative "dumb money".