The total crypto market cap fell more than 10% in the last 24 hours to $2.8 trillion at the time of writing.
Bitcoin (BTC) similarly fell 9% in a day to trade at $83,158.22. In fact, it fell as low as $80,659.81 on the day.
Related: Popular crypto company shuts down as Bitcoin crashes
As per the onchain analytics platform CoinGlass , over $2 billion worth of crypto positions got liquidated within the last 24 hours. BTC led the rout with over $1 billion in positions getting wiped out.
As per Glassnode , the realized losses on Bitcoin have surged to levels last seen during the FTX collapse. The crash is already being compared to the 2021-22 crash when crypto companies like FTX and Celsius went bankrupt.
Short-term holders are driving "the bulk of the capitulation," it said. The size and speed of these losses show that a lot of short-term buyers are retreating and selling as the price falls. Many recent buyers are also selling fast, it added.
What is the crypto market bleeding?
2025 began with Donald Trump winning the U.S. presidential election and pursuing a pro-crypto agenda and doing away with the Joe Biden era's crusade against crypto.
The market thought the crypto rally would continue unabated but the growing integration with the global traditional markets had its natural outcome.
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First, there was Trump's tariff escalation with China on Oct. 10. Next, the Federal Reserve is most likely not going to trim interest rates anymore this year, despite the president's pressure. Finally, there is the overall trader sentiment which is veering away from highly volatile, risky assets like crypto.
The stock markets are doing no better either. The S&P 500 index lost $2 trillion of market cap within five hours on Nov. 20.
The Kobeissi Letter highlighted that the index posted its fastest reversal since "Liberation Day" when Trump initiated the global tariff war, primarily targeting China, on Apr. 2.
The stock market in Japan is also reeling amid the diplomatic spat with China. In the biggest drop since Apr. 9, the Nikkei 225 index fell 3.2%.
Tomo Kinoshita, global market strategist at Invesco Asset Management Japan, said , "Overall market sentiment is worsening, and it's fueling a 'sell Japan'movement."
Given the way even the traditionally sound markets are reeling, there is no way traders are going to stick to risky assets like crypto. In fact, short-term crypto traders are already retreating in huge numbers, as per Glassnode.
What do crypto analysts say?
"Markets are essentially flying blind right now, starved of meaningful macro data and stabbing in the dark. That vacuum has triggered broad risk-asset selling," said James Butterfill, head of research at CoinShares.
"A sharp repricing in expectations for a December Fed rate cut has fueled the selloff."
Vetle Lunde, head of research at K33, is, however, optimistic about Bitcoin. He said previous drawdowns have lasted more than 50 days, and the current one is only 43 days old. BTC will bottom out at $84,000-$86,0000 before it recovers, he predicted.
Related: JPMorgan warns of MicroStrategy delisting risk from major equity indices
This story was originally reported by TheStreet on Nov 21, 2025, where it first appeared in the MARKETS section. Add TheStreet as a Preferred Source by clicking here.
