Bitcoin fell below $82,000 on Friday, November 21, 2025, marking its lowest level since early 2025. This sharp decline triggered liquidations close to $1.92 billion in crypto derivatives within the past 24 hours, according to data from CoinGlass.
The sudden sell-off resulted in the forced exit of over 391,000 traders, representing the worst intraday decline since the 2022 crypto winter. This downturn has pushed the overall cryptocurrency market capitalization below $2.95 trillion, the lowest point in the last seven months.
The 10-Minute Plunge That Triggered $1.9 Billion in Forced Exits
In under 10 minutes, Bitcoin experienced a 4.5% price drop, falling from $85,000 to an intraday low of $81,792 across major exchanges. This rapid decline led to the liquidation of $1.9 billion in positions over a four-hour period, with $1.78 billion of that amount comprising long bets on price appreciation.
Bitcoin bore the brunt of these liquidations, with $960 million in positions wiped out, predominantly long positions (93%). Ethereum (ETH) followed with $401 million in liquidations, and Solana (SOL) also contributed to the altcoin losses.
Over the preceding 24 hours, total liquidations reached $1.92 billion. This adds to Bitcoin's monthly decline of 23%. The top 10 cryptocurrencies, excluding stablecoins, have collectively seen double-digit losses over the past week.
The total crypto market capitalization shed $120 billion in a single day, dropping to as low as $2.95 trillion. This loss erased all of Bitcoin's gains for 2025 accumulated since its October peak of nearly $126,198.
Open interest in Bitcoin perpetual futures has decreased by approximately 35% from its October peak of $94 billion. This reduction is equivalent to roughly 8,500 BTC, valued at around $700 million. Traders have described the market movement as a "vertical dive," with liquidations reaching new record highs.
The Triggers Behind Bitcoin’s Sharpest Monthly Drop Since 2022
Analysts have attributed the recent price dip to overleveraged positions, distinguishing it from the $19 billion liquidation event in October, which was believed to be a consequence of spot selling amid United States and China tariff escalations.
Maarten Regterschot from CryptoQuant stated, "The current drop is leverage-driven," highlighting the 35% retreat in perpetual futures open interest from October highs as evidence.
Macroeconomic factors have also played a significant role in the price decline. The odds of a United States Federal Reserve rate cut plummeted to 37.6% following the cancellation of a PBI report, which contributed to panic selling and a shock to market sentiment. Furthermore, U.S. spot Bitcoin exchange-traded funds recorded net outflows of $903 million on Thursday, marking the largest single-day figure on record.
On-chain data indicates an increase in whale activity, with significant divestments of over $20 billion in Bitcoin in recent weeks, further fueling the bearish momentum. Concerns regarding fiscal policy changes, rising credit default swaps, and questions surrounding AI-driven stock valuations have now impacted the cryptocurrency market. Consequently, the Crypto Fear & Greed Index has fallen to 11, its lowest point since late 2022, signaling "extreme fear."
Derek Lim, head of trading at Caladan, characterized the current market environment as "a very tricky situation in the short term," noting a disconnect from positive signals such as the end of quantitative easing and potential stimulus measures.
One whale investor experienced a 93% reduction in profits, falling to $4 million, resulting in $37 million in unrealized losses across their Bitcoin and Ethereum holdings. Another prominent whale investor, Taiwanese influencer Jeff Huang, known as “Machi Big Brother,” saw his September gains of $44.8 million diminish to a $20 million deficit, including a $650,000 loss in the past 24 hours.