Bitcoin Plunges to $85K as Liquidations Hit $831M
Bitcoin plunged to $85,000 on November 21, as $831 million in crypto positions were liquidated over 24 hours. Data from Binance and Coinglass show $696 million in long positions and $135 million in shorts were forced closed, impacting about 227,500 traders.
The sell-off was driven by macroeconomic fears. A delayed October jobs report left investors speculating on the Fed’s December rate decision. Expectations of an interest rate cut in December waned after the report showed 119,000 jobs added in September. This data gap heightened market uncertainty and reduced liquidity.
Adding to the decline, a single whale sold 11,000 BTC, triggering further downward momentum. Ethereum also dropped sharply, falling 5.3% to $2,815.
This incident underscores the cryptocurrency market’s sensitivity to economic indicators and large-scale trades. Traders facing liquidations scrambled for safety. The rapid drop highlights the risk of high leverage and reliance on key data releases. With Fed policy and economic reports pending, volatility is likely to persist.
Bearish
Mass liquidations of $831 million in crypto positions and a significant 11,000 BTC whale sale reflect strong bearish momentum. In past cycles, aggressive Fed policy shifts or data delays often spurred rapid sell-offs, as seen in Q1 2022 when unexpected rate hikes led to over $1.6 billion in crypto liquidations. The delayed jobs report has raised doubts about a December rate cut, reducing market liquidity and fueling risk aversion. Short-term volatility is likely to remain high, with traders unwinding leveraged positions. In the long run, any dovish shift by the Fed could offer relief. However, until key economic data is released, market sentiment will stay cautious and tilted toward further declines.