Key Takeaways
After weeks of relentless selling, the crypto market entered yet another brutal slide, one that now has even seasoned traders questioning how much lower things can go.
Bitcoin (BTC) broke through the $90,000 level for the first time this year, marking a new low and wiping out gains for every investor who entered the market in 2025.
Ethereum (ETH) followed, losing its footing below $3,000 and dragging the rest of the market with it.
The sell-off caps what has been one of the most punishing stretches of the year, as cascading liquidations and evaporating confidence overshadow a backdrop of regulatory progress and a White House that continues to brand itself as pro-crypto.
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The start of the third week of November brought more turmoil across leveraged markets.
More than 183,000 traders were liquidated in just 24 hours, triggering $1.04 billion in wiped-out positions.
Longs, which had been steadily rebuilding after early-November drawdowns, took the hardest hit.
Long liquidations: $740 million.
Short liquidations: ~$290 million.
Bitcoin accounted for more than $550 million in liquidated positions as it slid to its new yearly low, while Ethereum racked up more than $170 million in liquidations amid its drop below the $3,000 threshold.
Across the board, altcoins were hammered with double-digit losses despite pending ETF approvals, new pro-crypto legislative activity, and efforts by the Trump administration to accelerate market-friendly reforms.
The disconnect between policy momentum and market performance has widened sharply, and that gap is starting to worry investors.
Washington has been unusually active on crypto policy this year, with the Trump administration pushing forward multiple deregulatory proposals and framing crypto as a matter of national competitiveness.
But even that political tailwind hasn’t been enough to stabilize a market that now appears to be reacting primarily to macroeconomic pressure.
The Federal Reserve’s rate cuts earlier in the year failed to spark meaningful buying, and investors now expect the central bank to stay hawkish heading into December. That expectation alone has kneecapped risk appetite across all major crypto assets.
The administration’s recently announced $2,000 stimulus package provided a brief jolt of optimism — but the rally faded within days as broader market weakness returned.
With the Fed signaling caution and no immediate rate cut on the horizon, analysts warn that the market may face a deeper downturn unless the White House takes a more aggressive stance, such as fast-tracking its proposed crypto reserve framework or accelerating pending regulatory clarity initiatives.
For now, the question hanging over the market is no longer whether this downturn becomes a full-blown bear market — but how long Washington will wait before stepping in.