Bitcoin News Update: Government Shutdown Sparks $341M in Crypto Liquidations Amid Liquidity Crunch

The crypto market underwent a significant liquidation episode over the past 24 hours, resulting in $341.85 million in losses as

(BTC) and (ETH) traders saw their leveraged positions forcibly closed, according to a . The majority of these liquidations were attributed to Bitcoin’s price fluctuating between $104,700 and $107,100, with long positions suffering the most—$41.75 million was erased from trades alone, as detailed in a . This sharp volatility unfolded amid broader market instability, with the recent U.S. government shutdown—resolved by the Senate on Nov. 11—having previously drained liquidity and postponed regulatory actions. This contributed to the wave of deleveraging that drove Bitcoin down more than 20% from its October high, as reported by Yahoo Finance.

Fragile investor confidence intensified the liquidation surge. The Crypto Fear & Greed Index dropped to 26, staying in the “Fear” category, while CoinGlass data indicated a 6% decrease in total liquidations to $339 million in the last day, according to Yahoo Finance. Open interest across crypto assets also fell by 2% to $145 billion, reflecting a more cautious approach. Experts suggested that the end of the government shutdown could spark a relief rally by injecting liquidity and resuming regulatory approvals, such as those for exchange-traded products, as noted in the Yahoo Finance report.

Institutional moves also played a role in shaping the market. JPMorgan Chase projected that Bitcoin could climb to $170,000 within six to twelve months, citing reduced volatility and a more stable market after the recent deleveraging, as mentioned in a

. The bank also invested $102 million in Bitmine Immersion Technologies, gaining indirect access to over 3.24 million , according to the TradingView article. Meanwhile, Charles Schwab revealed intentions to introduce a spot Bitcoin ETF and enable direct crypto trading by mid-2026, reflecting increasing institutional interest, as reported in a .

Both retail and institutional participants encountered headwinds. Crypto ETPs (exchange-traded products) experienced $1.17 billion in outflows last week, with Bitcoin ETPs accounting for $932 million of that, as outlined in a

. However, altcoins such as (SOL) and moved against the trend, attracting $118 million and $28 million in inflows respectively, as noted in the Cointelegraph report. This divergence pointed to changing risk preferences, with investors turning to smaller-cap assets as Bitcoin consolidated.

Regulatory shifts also played a part. Ripple broadened its institutional services, launching U.S. spot prime brokerage solutions for hedge funds and asset managers, as reported in a

. The company’s RLUSD stablecoin, now part of cross-margin systems, is designed to boost liquidity and efficiency for institutional operations, according to the CryptoNinjas piece. In a separate development, Pakistan announced plans to introduce a rupee-backed stablecoin and create a CBDC to tap into a $25 billion crypto market, aiming to promote financial inclusion and lower remittance costs, as detailed in a .

Looking forward, opinions among market participants are divided. Some analysts expect Bitcoin to challenge the $110,000–$115,000 range as liquidity returns, as suggested by the Yahoo Finance report, while others urge caution. Upcoming Federal Reserve interest rate decisions and ongoing geopolitical issues could influence risk appetite, with ETF inflows and Ethereum’s Fusaka upgrade in December seen as important factors, according to a

.

---