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

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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

Bitcoin

(BTC) and

Ethereum

(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

slipped under $2.95 trillion

— 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,

capturing the turmoil

. 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

saw $403 million wiped out

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

broke records with $59 million

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.

Experts cautioned

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.

Solana

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

observed

, 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”

confiscated $33 million

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

sought Chapter 15 bankruptcy protection

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,

forecasting a 50% correction

may be necessary to eliminate excessive speculation from the market.

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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- Major Ethereum whales and institutions continue accumulating ETH during market dips, with a single whale buying $7.2M worth of ETH amid broader price declines. - BlackRock injects $199.73M ETH into Coinbase , while Bitmine adds $72.52M ETH, signaling institutional confidence in crypto markets. - On-chain data reveals diversified whale strategies, including leveraged ETH longs, HYPE token staking, and AAVE token accumulation with $3M liquidity. - Binance's $215M ETH transfer to an unknown wallet and Ether

Bitget-RWA•2025/11/21 11:14

Ethereum News Update: Institutions Boost ETH Holdings Amid Market Downturn

Brazil’s Crypto Clampdown: Battling Tax Dodging or Driving a Decentralized Migration?

- Brazil's tax agency mandates foreign crypto exchanges and DeFi platforms to disclose user transactions under 2026 rules aligned with OECD's CARF framework. - New requirements target R$35,000+ monthly crypto activities, including stablecoin transfers, to combat $30B annual tax losses from unregulated digital asset flows. - Critics warn rules may drive users to untraceable decentralized platforms while political debates emerge over crypto tax exemptions for long-term holders. - Brazil will share crypto tra

Bitget-RWA•2025/11/21 11:14

Brazil’s Crypto Clampdown: Battling Tax Dodging or Driving a Decentralized Migration?

SHIB's Indifference Compared to MUTM's Rise: Is This DeFi's Upcoming Major Opportunity?

- Shiba Inu (SHIB) faces bearish technical signals with price near critical support at $0.00000837, risking a drop to $0.00000678 if broken. - Mutuum Finance (MUTM) surges 250% in presale, raising $18.7M with a dual P2C/P2P DeFi model and utility-driven tokenomics. - MUTM's $0.035-to-$0.04 price jump and Sepolia Testnet launch aim to create immediate liquidity, contrasting SHIB's stagnant volume and "apathy phase." - Analysts highlight MUTM's stablecoin minting, buy-back mechanisms, and 12K+ engaged follow

Bitget-RWA•2025/11/21 11:14

SHIB's Indifference Compared to MUTM's Rise: Is This DeFi's Upcoming Major Opportunity?

Bitcoin Latest Updates: ETF Arbitrage Tactics Heighten the Danger of Bitcoin Price Drops

- U.S. crypto markets face crash risks as major Bitcoin ETFs like IBIT and FBTC record $3.79B in November outflows, driven by profit-taking after October's rally. - Experts warn of 50%+ price corrections to flush out inexperienced investors buying ETFs/DATs, with leveraged positions and arbitrage trades amplifying downward pressure. - Bitcoin fell below $83,400 as ETF holders' average cost basis exceeds current prices, while arbitrage strategies involving futures shorting risk mechanically lowering prices.

Bitget-RWA•2025/11/21 11:14