Crypto Liquidations Near $2 Billion: Bitcoin Plunges to $82K Amid Market Rout

Crypto Liquidations Soar to Nearly $2 Billion Amid Bitcoin’s Intensifying Decline

Markets • November 21, 2025, 5:13AM EST

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Quick Take

Approximately $2 billion worth of leveraged crypto positions were liquidated over the last 24 hours, according to data from CoinGlass.
Bitcoin dropped to a low of $82,000, its lowest point since April, though it saw a slight recovery afterward.
Experts point to short-term investors giving up and a shortage of market liquidity as the main forces behind this turmoil.

Imagine waking up to find the digital asset you’ve invested in plummeting, wiping out billions in leveraged bets and sending shockwaves through the entire crypto ecosystem. That’s the dramatic reality hitting markets right now, and it’s a scenario that begs the question: Is this the bottom, or just the beginning of a deeper downturn? Let’s dive into the details of this latest crypto rollercoaster, exploring why it’s happening and what it might mean for the future—because sticking around could reveal some surprising twists.

On Friday, the crypto world experienced yet another brutal sell-off, with leveraged positions totaling nearly $2 billion being forcibly liquidated as Bitcoin nosedived to $82,000. This sharp decline dragged the total crypto market capitalization down to about $2.9 trillion, marking the first time it’s dipped below $3 trillion since earlier this year. To put this in perspective for newcomers, leveraged positions are like borrowing money to amplify your trades—when prices swing the wrong way, exchanges automatically sell your assets to cover losses, often at a loss to the trader. It’s a bit like a financial avalanche, where one big drop triggers a chain reaction of forced sales, making the market even more volatile.

Data from CoinGlass reveals that over 396,000 traders were caught in this wipeout, with the biggest single liquidation being a $36.78 million BTC-USD position on the Hyperliquid decentralized exchange. But here’s where it gets controversial: Is this data painting a full picture? While platforms like Bybit offer real-time, complete liquidation stats, others such as Binance and OKX only share partial or outdated information. This means the reported $2 billion figure might actually be an underestimate, potentially hiding even more forced sell-offs. For beginners, think of it as trying to measure a storm with a leaky bucket—some rain gets through, but a lot slips away. And this is the part most people miss: incomplete reporting could be fueling misinformation, leading investors to make decisions based on an incomplete story. What do you think—should exchanges be required to disclose everything in real time to build trust?

The recent turmoil isn’t happening in isolation. It comes on the heels of consecutive market explosions this month, driven by accelerating outflows from Bitcoin ETFs and a mix of economic signals that have left analysts scratching their heads. As reported by The Block, Bitcoin ETFs experienced $903 million in net outflows on Thursday, which is the second-largest since these funds launched. Many experts believe these redemptions from Wall Street players are exacerbating the sell-off, pulling liquidity out of an already stressed market.

Bitcoin has now fallen over 30% from its peak in October and is headed for its worst monthly performance since the infamous 2022 crash. It’s also on track for its weakest fourth quarter since 2018—a quarter that typically sees the strongest crypto gains, making this reversal particularly puzzling. Picture this: Historically, Q4 is like the holiday season for crypto, with optimism and buying power boosting prices. But this year, it’s more like a rainy parade, with investors hunkering down instead of celebrating.

According to Timothy Misir, Head of Research at BRN, Friday’s plunge drove the Fear & Greed Index down to 11, indicating ‘extreme distress.’ He highlighted how liquidity is ‘thinning into a full-scale vacuum,’ pushing the broader crypto market back to lows last seen in the second quarter of this year. Bitcoin’s dip below the Active Investors Mean now points toward the True Market Mean at around $81,900—a key price level where many investors bought in, acting as a psychological barrier. Misir describes this as ‘the next major line before full bear confirmation.’

‘In the capitulation zone, the market is driven by forced liquidations rather than rational decisions,’ Misir explained. ‘Investors are suffering heavy losses, which often signals an imminent sharp rebound, but timing depends on institutional money flowing back in. For now, the smart move is to play defense.’

This view introduces an intriguing counterpoint: While some see capitulation as a buy signal, others argue it could mark the end of a bullish era. Is the market really on the verge of a comeback, or are we witnessing a regime change where optimism fades for good? It’s a debate worth pondering, especially as onchain data shows short-term holders cashing out at levels comparable to the severe corrections of 2021 and mid-2024. Misir warns that failing to reclaim the $88,000–$90,000 range could lead straight to lower support zones around $78,000–$82,000, potentially prolonging the pain.

Adding to the complexity, macroeconomic factors are playing a role, but not in the relieving way one might hope. Earlier this week, U.S. jobs data surprised everyone with a 119,000-job increase, easing fears of a recession but muddying the waters for a potential December interest rate cut. Then, comments from Kevin Hassett, the White House nominee for Federal Reserve Chair, suggested that pausing rate reductions would be ill-advised, given cooling inflation and the economic drag from a government shutdown. On the brighter side, Japan’s massive $135 billion stimulus package provided some global uplift, yet it wasn’t strong enough to counter the crypto-specific unwind of leverage.

‘Macro conditions are actually supportive, but crypto is largely reacting to its own internal dynamics and liquidation pressures,’ Misir observed. This disconnect sparks another controversial angle: Are external economic tailwinds irrelevant in a crypto downturn, or could they hasten recovery if investors look beyond the noise? For example, during past cycles, strong global stimuli have sometimes acted as catalysts for crypto rallies, but only after the internal house is cleaned up.

Where might the cycle’s ‘max-pain’ point lie? That’s a question gaining traction as experts analyze potential turning points. Andre Dragosch, Research Head at Bitwise Europe, suggests Bitcoin could be nearing a ‘max-pain’ zone—levels where major institutional holdings are at risk, and forced selling often peaks before exhaustion. He identifies two critical anchors: Around $84,000, which aligns with the average cost basis for BlackRock’s IBIT, the largest U.S. spot Bitcoin ETF. Dropping below that would mean IBIT holders are in the red, historically a point where sellers burn out. The lower end of this range hovers near $73,000, roughly matching MicroStrategy’s overall cost basis. Dragosch predicts a bottom might form somewhere in between, resembling a classic cycle reset with fire-sale prices.

‘We hit max pain when we touch either the IBIT cost basis at 84k or MSTR’s at 73k,’ he posted on X. ‘Likely, we’ll find a final bottom in the middle, but these would be bargain-basement levels signaling a full reset.’ This interpretation is provocative: Does targeting these ‘pain points’ encourage speculative investing, or is it a realistic roadmap? And this is the part most people miss—such predictions rely on historical patterns, but crypto’s evolution might break the mold.

As of now, Bitcoin is hovering around $82,500, down nearly 10% in the past 24 hours. Major altcoins like Ether, SOL, and BNB also suffered double-digit declines in the widespread market slump. For beginners, this interconnectedness means that Bitcoin’s struggles often ripple out, affecting the entire crypto landscape like dominos falling.

In wrapping up, this crypto rout raises big questions about resilience and prediction in a volatile space. Do forced liquidations signal a smart entry point, or are we underestimating the depth of this bear phase? And here’s where it gets controversial—could institutional withdrawals from ETFs be the real culprit behind prolonged downturns, or is this just part of a natural cycle? Share your thoughts in the comments: Are you holding steady, or has this rout changed your crypto strategy? Do you agree with analysts like Misir and Dragosch, or do you see a different path ahead? Let’s discuss—your insights could help others navigate this wild ride.

Disclaimer: The Block is an independent media outlet that delivers news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to deliver objective, impactful, and timely information about the crypto industry. Here are our current financial disclosures.

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