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Bitcoin News Update: Fundamental Flaws Trigger $3 Trillion Cryptocurrency Collapse During Speculative Frenzy

Bitcoin News Update: Fundamental Flaws Trigger $3 Trillion Cryptocurrency Collapse During Speculative Frenzy

Bitget-RWA2025/11/21 10:22
By:Bitget-RWA

- Cryptocurrency markets collapsed on Nov 21, 2025, with $1.93B in liquidations erasing $3T in value as Bitcoin and Ethereum plummeted amid unexplained volatility. - Speculative panic and structural fragility drove Bitcoin below $87,000 while 391,164 traders faced losses, highlighting market instability and regulatory gaps. - UK authorities seized $33M in crypto linked to Russian sanctions evasion, while Brazilian firm Rental Coins filed bankruptcy to recover fraud-linked assets. - Analysts warned of prolo

On November 21, 2025, the cryptocurrency sector experienced an unprecedented crash, resulting in almost $1.93 billion in forced liquidations and erasing $3 trillion from the market’s overall value as

(BTC) and (ETH) plunged during a period of unexplained turbulence. The dramatic downturn, fueled by speculative fear and underlying market vulnerabilities, drove Bitcoin down to $87,000, while the total crypto market capitalization — a threshold not reached in five months.

The selloff happened at breakneck speed, with the S&P 500 tumbling 190 points in less than an hour, even before the U.S. Labor Department released its employment data. Experts attributed the chaos to extreme shifts in market sentiment rather than broader economic factors. “This is total liquidation madness—either someone has inside information, or the market has gone completely irrational,” a trader posted on social media,

. In just 24 hours, more than 391,164 traders saw their positions liquidated, with long trades making up $1.78 billion of the losses. Bitcoin alone accounted for $929 million in liquidated long positions, while Ethereum .

XRP, which had already dropped 15% over the week, failed to recover momentum despite the introduction of several spot ETFs. Bitwise’s XRPC ETF launched with $22 million in trading activity and $105 million in new investments, while Canary Capital’s XRPC ETF

in first-day trades. Nevertheless, XRP’s value slid to $1.92 as major holders offloaded 200 million tokens within 48 hours of the ETF’s debut. that significant institutional investment might not arrive until 2026, postponing any substantial effect on Ripple’s price.

Bitcoin News Update: Fundamental Flaws Trigger $3 Trillion Cryptocurrency Collapse During Speculative Frenzy image 0

The upheaval revealed significant structural flaws within the crypto ecosystem.

dropped nearly 50% since the start of the year, while Bitcoin and Ethereum declined by 12% and between 25–35% respectively over the past two months. “The current market framework is in dire need of reform,” one analysis , stressing the importance of regulatory clarity, such as the Clarity Act, to ensure long-term market stability.

Amidst the market chaos, a UK-led initiative known as “Operation Destabilise”

in both cash and cryptocurrencies linked to a worldwide money laundering operation that helped Russia evade sanctions. The NCA detailed how criminal syndicates launder drug money through crypto to support the war in Ukraine, with activities spanning at least 28 cities across the UK.

The crash also led to corporate repercussions. Brazilian crypto company Rental Coins

in the United States to recover assets lost to a pyramid scheme. The company’s administrators are working to track crypto transactions and reclaim funds for U.S. investors affected by the fraud.

As the market tries to recover, opinions among analysts are split. Some believe the downturn presents a short-term buying window, while others warn of a more severe bearish phase ahead. “The next bear market could be much more devastating,” warned QwQiao, co-founder of Alliance DAO,

may be necessary to eliminate excessive speculation from the market.

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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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