Crypto Market Remains on Edge After Over $2B Wiped Out in the Last 24 Hours
Overview
The crypto market is experiencing significant turmoil, with over $2 billion in leveraged positions liquidated within a single day. Major cryptocurrencies, including Bitcoin and Ethereum, have faced sharp declines, prompting traders to brace for further volatility, particularly with a large options expiry approaching.
Massive Liquidations Trigger Steep Sell-Off
Recent data indicates that the crypto market has been rocked by a wave of liquidations, erasing more than $2 billion in both long and short positions within a 24-hour period. This event is considered one of the most severe since the historic crash in October. Bitcoin saw a drastic decline, crashing to a low of $82,000, while Ethereum fell below $2,700. Long position holders were particularly affected, with over $1.8 million in long positions liquidated across major exchanges. The largest single liquidation occurred on Hyperliquid, involving a BTC-USD position valued at $36.78 million. Overall, Bitcoin long liquidations accounted for approximately $966 million, while Ethereum long positions faced losses around $407 million. The lack of specific details regarding the tokens or exchanges involved contributed to increased bearish sentiment within the community.
Options Expiry and Whale Moves Add to Market Pressure
This sell-off coincides with an impending expiry of $4.2 billion in crypto options, which includes more than 39,000 BTC options and 185,000 ETH options. Traders are showing a preference for put positions, indicating expectations of further price declines. The maximum pain point for Bitcoin is positioned near $98,000, significantly above current market levels, while Ethereum’s max pain point is around $3,200. Additionally, a notable Bitcoin whale, who has held the asset since 2011, reportedly sold over 11,000 BTC, valued at $1.3 billion, contributing to the downward pressure. Conversely, other large holders have accumulated over $65 million in spot Bitcoin near the $85,000 mark, suggesting some strategic buying amidst the volatility.
Fragile Liquidity Keeps Market on Edge
The current instability in the market can be traced back to a previous liquidation event in October, which resulted in a dramatic disruption of liquidity conditions. Market makers are still recovering from this shock, leading to a cautious approach that has created a fragile environment. In this context, even minor price fluctuations can trigger further cascading liquidations. Despite the prevailing chaos, there are signs of resilience, particularly from infrastructure players like Solana and Fireblocks, which have maintained high transaction speeds and network reliability during these tumultuous times.
Impact on the crypto market
- Over $2 billion in liquidations have heightened bearish sentiment among traders.
- Significant declines in Bitcoin and Ethereum prices have raised concerns over market stability.
- The upcoming $4.2 billion options expiry may lead to further volatility in the market.
- Whale behavior, including large sell-offs and strategic buying, is influencing market dynamics.
- The fragile liquidity conditions are making the market susceptible to rapid price swings.
- Infrastructure players are showing resilience, maintaining operational reliability during market stress.
Updated: 11/22/2025, 3:08:18 AM
