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Bitcoin Updates Today: Leverage and ETF Withdrawals Drive the "Major Crypto Collapse of 2025"

Bitcoin Updates Today: Leverage and ETF Withdrawals Drive the "Major Crypto Collapse of 2025"

Bitget-RWA2025/11/24 09:06
By:Bitget-RWA

- Bitcoin plunged to $80,600 in November 2025, marking its worst monthly drop since 2022, with $1.2T in market value lost. - The "Great Crypto Crash" was driven by ETF outflows, leveraged liquidations, and global risk aversion, dragging Ethereum and altcoins to multi-month lows. - Structural factors like $19B in October leveraged losses and $3.8B ETF outflows amplified the downturn, while macro risks like Fed policy uncertainty worsened sentiment. - Analysts remain divided: some see institutional BTC hoard

Bitcoin Drops Near $80,000 as "Great Crypto Crash of 2025" Unfolds

On November 21, 2025, Bitcoin tumbled to $80,600, suffering its steepest monthly drop since the 2022 market meltdown and wiping out over $1.2 trillion in value within a month and a half.

, has been intensified by ETF withdrawals, forced liquidations from leveraged trades, and a global retreat from risky investments. and other leading altcoins have also suffered sharp declines, with and falling below $2,700.

This crash comes after a euphoric surge that had sent

to an all-time high of $126,000 in early October, and increased institutional participation. But sentiment has shifted dramatically. , Bitcoin's 23% November drop has erased all gains from the ETF-driven rally, while CoinGecko reports the total crypto market cap has shrunk to under $2.8 trillion.

Underlying market dynamics are worsening the fall.

has led to a wave of forced liquidations, with more than $19 billion in leveraged trades wiped out in a single day in October. At the same time, , signaling growing caution among institutions. from its October peak of $94 billion, indicating a pullback in speculative trading.

Bitcoin Updates Today: Leverage and ETF Withdrawals Drive the

. Diminishing expectations for Federal Reserve rate cuts and worries about overpriced AI stocks have triggered a widespread move away from risk. Tony Sycamore, a strategist at IG, cautioned that Bitcoin’s status as a risk sentiment indicator means "things could start to get really, really ugly".

Blockchain data shows short-term investors are selling at a loss, with the STH-SOPR ratio dropping below 1.0—a typical sign of market capitulation. Still, expert opinions are split. Ki Young Ju from CryptoQuant points out that institutional players, including firms like MicroStrategy and some governments, have removed millions of BTC from circulation, which could help prevent a deeper slide. On the other hand, BitMEX founder Arthur Hayes expects further declines to the $80,000–$85,000 range unless the Fed steps in with more liquidity.

The selloff has also hit crypto-related stocks. MicroStrategy shares have fallen to their lowest in a year, while Japan’s Metaplanet has dropped 80% since its June high. Mining companies and ETF platforms such as

are also facing extended losses, highlighting the widespread impact of the downturn.

Despite the widespread losses, some believe a rebound is possible. Richard Teng of Binance described the correction as "healthy consolidation," noting that Bitcoin is still above its 2024 levels. Veteran trader Peter Brandt suggested that this crash might actually benefit Bitcoin in the long run, potentially paving the way for a rally to $200,000 before 2030.

Key support to monitor is the $80,000 area, where Citi analysts say many ETF investors are concentrated. If ETF outflows persist or new macro shocks emerge, the decline could continue, but stabilization in futures interest or renewed institutional buying may signal a bottom.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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