Home Latest Insights | News Total Crypto Market Capitalization Drops 7% and $1B+ in Liquidations

Total Crypto Market Capitalization Drops 7% and $1B+ in Liquidations

Total Crypto Market Capitalization Drops 7% and $1B+ in Liquidations

The crypto market is experiencing a sharp correction today, November 14, 2025. The total market capitalization has plummeted approximately 7% over the last 24 hours, erasing over $200 billion in value and bringing the overall cap to around $3.2–3.26 trillion—down from peaks near $3.5 trillion earlier this week.

This downturn has been exacerbated by cascading liquidations totaling over $1 billion in leveraged positions, primarily from long (bullish) bets that got wiped out as prices fell.

Over 300,000 traders have been liquidated, with longs accounting for ~90% of the $1B+ total. This creates a feedback loop—forced sales push prices lower, triggering more liquidations. Bitcoin and Ethereum bore the brunt, with BTC dipping below $96K and ETH testing $3,100 lows not seen since early October.

Broader market jitters are spilling over. U.S. ETF outflows hit $869 million for Bitcoin alone, signaling reduced institutional appetite amid rising recession fears, U.S.-China trade tensions, and disappointing corporate earnings.

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The Crypto Fear & Greed Index has plunged to 22, down from greed levels last week. Whale activity is mixed—some large holders are accumulating at these dips (e.g., BTC whales buying ~10K coins), but overall exchange inflows suggest profit-taking and rotation into stables like USDT reserves up ~$1B.

Bitcoin dominance has slipped to 59%, hinting at altcoin weakness amplifying the cap drop. Traders are calling it a “weird day” with BTC dominance falling, speculating on a shift away from Bitcoin toward alts.

Alerts highlight the $869M ETF outflows and liquidity crunch pushing the market cap to $3.2T, with ETH mirroring BTC’s pain but showing whale support.

Weekly recaps note BTC’s 5.38% drop and rising liquidations in the $400–500M range per session, with funding rates turning negative—signaling a potential reset.

Broader chatter blames macro headwinds for dragging the market below $100K support, with calls for buyers to step in at current levels. This looks like a healthy deleveraging after the post-halving rally pushed BTC to $110K+ highs earlier in Q4. Support levels to watch.

BTC at $95K could trigger another $500M wave if broken and ETH at $3,000. Upside catalysts include potential Fed rate cut signals next week or renewed ETF inflows. If you’re holding, this dip has historically been a buy signal—20 of the last 25 extreme fear readings led to 20%+ rebounds within a month.

But with leverage still elevated, volatility could persist. If this is your portfolio taking a hit, hang tight; crypto’s “Cambrian explosion” means survivors thrive post-shakeout.

Extreme Fear (0-24) often signals panic selling, undervaluation, and capitulation—classic contrarian buy zones, as popularized by Warren Buffett’s “be fearful when others are greedy” mantra. Historically, these lows have preceded sharp rebounds, with data showing that markets frequently recover as fear dissipates and buyers return.

Based on aggregated historical analysis, out of ~25 instances of Extreme Fear since the index’s inception in 2018, 20 (80%) led to Bitcoin price gains of 20%+ within one month, and 16 (64%) saw 50%+ rallies within three months.

Average rebounds: +15% in 1 week, +35% in 1 month, and +65% in 3 months post-low. These patterns hold across bull and bear cycles, though deeper macro downturns (e.g., 2022) can delay full recovery.

The index itself typically rebounds to Neutral (25-49) within 7-14 days and Greed (50+) within 1-2 months. Not every low leads to immediate gains—e.g., 2022’s June event extended the bear market—but 80%+ do rebound positively within 1 month.

With the index at 22—its lowest since April 2025—this setup mirrors past winners like March 2020 or August 2024. Watch for catalysts like Fed signals or ETF reversals to ignite the rebound. If history rhymes, expect volatility but a likely +30-50% BTC lift by year-end.

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