Bitcoin led a sharp crypto sell-off as more than $2.2 billion in leveraged bets were wiped out, pushing total market value down about 8% to under $3 trillion. Heavy outflows from crypto exchange-traded funds (ETFs) and rising fear readings fueled the slide.
The spark: ETF money heads for the exits
Spot ETFs, a key gauge of big investor interest, turned decisively negative this week. Spot Bitcoin ETFs saw $903 million in withdrawals on Nov. 20, the second-largest daily outflow since Feb. 25's $1.14 billion record. Spot Ethereum ETFs notched a ninth straight day of outflows on Nov. 20, with $261.6 million pulled and total net assets now $17.4 billion, per SoSoValue.
ETFs make crypto easier for traditional investors to buy and sell. When money leaves, it can add pressure to prices—especially when markets are already on edge.
How deep was the drop?
Bitcoin (BTC) fell more than 10% at the day's low to $81,050, extending weekly losses above 12%. Ethereum (ETH) slid roughly 10% to around $2,700. Among top tokens, Dogecoin (DOGE) dropped about 11% to $0.14, while Tron (TRX) held up better, down about 2.7%.
Forced selling snowballed
Liquidations—when exchanges automatically close leveraged positions to prevent bigger losses—surged as the drop accelerated. Data from Coinglass shows more than $2.2 billion in positions from over 400,000 traders liquidated in 24 hours, the largest one-day wipeout since the Oct. 10 crash that saw nearly $20 billion vanish. Long positions took most of the hit at just over $2 billion. Bitcoin accounted for $1.13 billion of the liquidations, while Ethereum saw $428 million.
Risk gauges flash red
The Crypto Fear & Greed Index stayed in "extreme fear" for a sixth straight day, signaling investors are pulling back and volatility may persist.
Capitulation signs return
On-chain watchers say recent buyers are taking the brunt of the pain. Glassnode flagged that realized losses—coins sold below their purchase price—have jumped to levels last seen during the FTX collapse, led by short-term holders. The firm described it as a meaningful washout of "marginal" demand as newcomers sell into the drop.
CryptoQuant CEO Ki Young Ju sounded cautious, noting the market looks more bearish than he expected and warning that if conditions persist, Bitcoin may not mount a strong recovery for 3–6 months. Read his comments.
Movers: few safe spots
The sell-off was broad. Among the top 100 coins, the only non-stablecoin in the green was Tether Gold, up 0.1%. Laggards posted double-digit losses, led by Canton (CC), down more than 22%, and NEAR Protocol (NEAR), down about 17%.
Macro backdrop didn't help
U.S. inflation is still above target at roughly 2.75%, New York Fed President John Williams said in a speech on Friday, calling policy "modestly restrictive" and data-dependent. Recent government reports showed job gains with a higher unemployment rate, while the latest Real Earnings data indicated average hourly pay was unchanged from August. A softening labor market alongside sticky inflation can keep the Federal Reserve cautious, which tends to weigh on risk assets like crypto.
Why this matters
Big ETF outflows remove a key support for Bitcoin and Ethereum. At the same time, heavy liquidations flush out leverage. That reset can reduce future selling pressure, but it often takes time for confidence to recover—especially if macro signals stay mixed.
For everyday investors, the lesson is simple: rapid moves are common when leverage builds up. Using smaller position sizes and avoiding high leverage can help manage risk during these swings.
What to watch next
- ETF flows: Another week of outflows would signal continued caution from big investors.
- Derivatives heat: Funding rates and open interest will show if leverage is rebuilding.
- On-chain stress: Realized losses and short-term holder activity from firms like Glassnode can flag capitulation or stabilization.
- Stablecoin trends: Fresh stablecoin issuance often precedes new buying power.
- Macro data: Any surprise on inflation or jobs could sway the Fed's stance and crypto risk appetite.