The cryptocurrency market experienced a brutal flash crash in the early hours of Nov. 21, driving bitcoin from above $85,000 to a low of $82,032 in minutes, according to a report by CryptoComLearn. Although BTC recovered quickly to $84,000, it remained down nearly 14% over seven days and more than 22% over the last 30 days. The sharp sell-off brought Bitcoin within range of the pessimistic predictions previously made by BitMEX founder Arthur Hayes and veteran trader Peter Brandt.
Altcoin Bloodbath and Trillions Wiped Off
The flash crash decimated the altcoin market. Ethereum (ETH) plunged to just above $2,700, its lowest in four months. XRP last traded near $1.80, reminiscent of levels seen after U.S. President Donald Trump’s “Liberation Day” tariff announcement that roiled global markets and drove BTC to $76,000. BNB, which had recently trended against the market, tumbled to $828 before recovering to $834. Many high-cap altcoins suffered double-digit or near-double-digit losses within 24 hours.
The sell-off drove the total crypto market capitalization below $3 trillion, with cumulative market losses since the start of the week exceeding $300 billion. Bearish sentiment is growing, with many analysts and prediction market bettors increasingly wagering on further declines, potentially seeing Bitcoin end the year below $80,000.
$1.93 Billion Leverage Wipeout Hits 400,000 Traders
The sharp price movement triggered a massive liquidation event, wiping out $1.93 billion in leveraged positions and affecting nearly 400,000 traders, according to Coinglass data (3:40 a.m. EST). Bitcoin alone accounted for $965 million in liquidations, with long positions representing more than 90% of those losses. While liquidated longs dominated across most assets, Zcash (ZEC) saw an anomaly: $7.54 million in short positions were liquidated versus $6.96 million in longs.
This flash crash once again highlights the fragility of high-leverage trading in crypto markets. As the year draws to a close, investors should remain vigilant about macroeconomic data and regulatory changes that could trigger further volatility.