Market Overview - The cryptocurrency market experienced a significant selloff on November 21, 2025, with a total market cap dropping 6% to $2.9 trillion, falling below the $3 trillion mark for the first time in five months, which is a critical psychological level for investors [1][5] - Total liquidations reached $1.91 billion, with long positions suffering the most at $1.78 billion compared to $129 million in shorts, indicating a heavy bias towards bullish positions among traders [3][20] Major Liquidations - Bitcoin led the liquidations with $960 million, followed by Ethereum at $403 million, with the largest single liquidation being a $36.78 million BTC position on Hyperliquid [2][4] - A total of 391,000 traders lost positions during this selloff, highlighting the widespread impact on the market [3][4] Price Movements - Bitcoin fell to $81,050, its lowest level since April, while Ethereum dropped below $2,900, marking a 10% decline [4][17] - Other major tokens like Solana, XRP, and Binance Coin experienced losses ranging from 20% to 35% from their November highs [4][18] ETF Outflows and Market Liquidity - Bitcoin ETFs recorded $3.79 billion in net outflows for November, surpassing the previous record of $3.56 billion in February, with BlackRock's IBIT seeing $2.47 billion in redemptions [9][11] - The outflows significantly reduced market liquidity, exacerbating the selling pressure as fewer buyers were available to absorb the sell-off [11][20] Market Sentiment and Psychological Factors - The Crypto Fear & Greed Index fell to 11, indicating extreme fear among investors, a level not seen since the FTX collapse in November 2022 [4][6] - Market psychology shifted negatively, with even neutral news interpreted unfavorably, contributing to the overall panic [14] Technical Analysis and Support Levels - Bitcoin struggled to maintain the $100,000 level and dropped below $85,000, with analysts warning that falling below $80,000 could trigger significant losses due to institutional buying levels [7][8] - The breakdown of key support levels triggered automated sell orders, creating a feedback loop that accelerated losses [8][20] Comparison to Previous Events - The November selloff, while substantial at $2 billion in liquidations, was less severe than the $19 billion wiped out on October 10, which was driven by a macro shock combined with technical selling [19][21] - The current selloff was characterized as a mechanical deleveraging, with automated liquidations amplifying the downward pressure on prices [20]