Bitcoin News Update: Fundamental Flaws Trigger $3 Trillion Cryptocurrency Collapse During Speculative Frenzy
- 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
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,
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
The upheaval revealed significant structural flaws within the crypto ecosystem.
Amidst the market chaos, a UK-led initiative known as “Operation Destabilise”
The crash also led to corporate repercussions. Brazilian crypto company Rental Coins
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,
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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