Cryptocurrency Market Plunges: Bitcoin Crashes Below $82,000, Over $1.9 Billion Liquidated

The cryptocurrency market experienced a dramatic “Black Friday” today, as Bitcoin extended November’s brutal sell-off with another steep decline. For the first time since April this year, the flagship digital asset crashed below the critical $82,000 support level. Amid a cascade of leveraged liquidations and a widespread collapse in market confidence, this month is poised to record its most severe single-month percentage drop since the depths of the 2022 “crypto winter.”

Bitcoin briefly touched a low of $81,600 today before stabilizing around the $82,500 mark. This aggressive market correction has not only erased all of Bitcoin’s year-to-date gains but has also pushed the market back to levels seen before the significant rally that began in November of last year.

Major Altcoins Face Broad Sell-off

The storm quickly spread across the entire cryptocurrency ecosystem. Ethereum (ETH) tumbled below $2,700, registering a weekly loss of 16.5%. Solana (SOL) plummeted over 11% within a 24-hour period, while other prominent altcoins like Ripple (XRP), BNB, and Cardano (ADA) saw declines ranging from 9.8% to 13%.

Collectively, major tokens have retreated significantly, falling between 20% to 35% from their November peaks. Smaller-cap “altcoins” have experienced even more profound and seemingly bottomless drops.

Over $1.9 Billion in Liquidations Fuel Market Carnage

According to CoinGlass data, the past 24 hours witnessed a staggering $1.95 billion in total liquidations across the network. A vast majority, $1.8 billion, originated from long positions, indicating aggressive unwinding of bullish bets. Bitcoin alone accounted for $983 million in liquidations, with Ethereum contributing $411 million, as a broad wave of forced closures swept through other altcoins as well.

This market rout has effectively wiped out approximately 396,000 traders. The most severe single incident occurred on the decentralized exchange Hyperliquid, where one trader’s Bitcoin position evaporated by an astonishing $36.7 million, making them the largest casualty of the downturn.

Macroeconomic Headwinds and Capital Exodus

Beyond the crypto sphere, the broader macroeconomic environment offered no respite. Global equity markets recorded their worst performance in seven months this week. Mounting concerns over potentially inflated AI valuations, coupled with persistent uncertainty surrounding the Federal Reserve’s likelihood of a December rate cut, severely dented investor confidence.

The MSCI Global Index shed over 3% this week, with U.S. technology stocks remaining under considerable pressure. Concurrently, a noticeable flight to safety was observed, with significant capital flowing into U.S. Treasury bonds.

Within the crypto market itself, capital momentum continues to deteriorate. U.S. Bitcoin spot Exchange Traded Funds (ETFs) shockingly recorded over $900 million in net outflows on Thursday, marking the second-largest single-day outflow since their launch in early 2024.

Furthermore, the open interest in perpetual futures contracts has plummeted by 35% from its October peak of $94 billion, a clear indicator of rapidly dwindling market liquidity.

Investor Sentiment Plummets Amid Uncertainty

The collapse in retail investor confidence has been equally striking. The “Crypto Fear & Greed Index” plunged to a reading of 11 yesterday (the 20th), firmly placing it in the “extreme fear” zone—its lowest level since late 2022.

While historical patterns often suggest that extreme fear can precede a market bottom, the current situation offers no clear signs of a rebound. Bitcoin has decisively broken through multi-month key support levels, and significant institutional capital withdrawals continue, leaving the market in a precarious state.