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Bitcoin Leverage Liquidations Spike: An Urgent Reminder for Managing Risks Amid Crypto Market Volatility

Bitcoin Leverage Liquidations Spike: An Urgent Reminder for Managing Risks Amid Crypto Market Volatility

Bitget-RWA2025/11/24 16:28
By:Bitget-RWA

- 2025年11月比特币价格暴跌触发20亿美元杠杆衍生品清算,机构与散户风险策略差异凸显。 - 机构通过低杠杆和大市值资产规避清算,散户过度杠杆导致93%损失集中于比特币多头。 - 市场稳定性受冲击:比特币ETF流出35.5亿美元,算法稳定币供应减半加剧流动性危机。 - 长期投资者关注8万美元支撑位,以太坊Layer 2扩展和比特币ATM网络增长提供结构性支撑。 - 事件警示过度杠杆风险,机构保守策略与散户激进操作形成鲜明对比,凸显精准风险管理必要性。

In late November 2025, a dramatic price drop led to an unprecedented $2 billion in leveraged derivatives being liquidated within just one day, highlighting significant differences in risk strategies between institutional and individual investors. As the price fell below $85,000, long positions made up 93% of the losses ($1.86 billion), while only $140 million came from short positions. Bybit and Hyperliquid together saw over $1.25 billion in liquidations, with Bitcoin ($1.01 billion) and ($423 million) bearing the brunt . This episode reveals the vulnerability of leveraged trades in the crypto space and emphasizes important takeaways for both active traders and long-term holders.

Institutional vs. Retail: Contrasting Approaches to Risk

Institutional players, who generally use less leverage, weathered the market turbulence with limited impact. By concentrating on major cryptocurrencies like Bitcoin and Ethereum and keeping leverage low, institutions avoided the severe liquidation cycles that hit retail investors hard

. On the other hand, retail traders—often attracted to high-leverage offerings on platforms such as Bybit and Hyperliquid—suffered outsized losses. Excessive leverage in volatile environments like and Binance Smart Chain intensified the fallout, as network disruptions and centralization risks worsened liquidity issues .

The timing around Thanksgiving further shifted the dynamics. With institutions less active due to the holiday, retail sentiment drove short-term price moves. This, combined with thinner liquidity and wider spreads, created ideal conditions for panic selling and forced liquidations

. Morgan Stanley's Applied Equity Team observed that these patterns are typical of late-stage bull markets, where speculation overtakes prudent risk management .

Market Stability and Liquidity’s Impact
Bitcoin Leverage Liquidations Spike: An Urgent Reminder for Managing Risks Amid Crypto Market Volatility image 0

The November wave of liquidations has sparked concerns about the market’s stability. Bitcoin ETF outflows reached $3.55 billion for the month, marking the largest monthly outflow on record and reversing the inflows that had driven 2025’s rally

. At the same time, algorithmic stablecoins like saw their circulating supply cut in half since October, adding to liquidity worries .

Despite these setbacks, analysts suggest that the downturn is mainly the result of technical market mechanisms rather than a loss of investor faith. NYDIG, for example, remains optimistic about the long-term outlook, attributing the price decline to market structure shifts rather than fundamental problems

. However, the Federal Reserve’s possible pause in rate reductions—which helped stabilize markets in 2021—could now restrain speculative activity and slow the transition to more exuberant market phases .

Opportunities for Long-Term Investors

The November downturn marks a pivotal moment for those investing with a long-term perspective. Technical indicators point to potential support for Bitcoin near $80,000, with significant levels at $89,400 (Active Realized Price) and $82,400 (True Market Mean Price) possibly serving as price floors

. The 1-week RSI has entered oversold territory—a rare occurrence typically seen at major market lows—hinting at a possible trend reversal .

On a fundamental level, Bitcoin appears to be undervaluing positive macroeconomic trends, such as loose monetary policy and potential Fed easing, indicating a sentiment correction rather than a shift to a bearish market

. While the Cumulative Value Days Destroyed (CVDD) model suggests a worst-case scenario of $45,500, ongoing developments like Ethereum’s Layer 2 growth and the projected 54.7% CAGR expansion of the Bitcoin ATM network through 2032 provide strong long-term prospects .

The Need for Rigorous Risk Management

The surge in liquidations during November is a clear warning about the dangers of excessive leverage. Retail investors who neglected proper position sizing and stop-loss measures suffered heavy losses, while institutions’ cautious tactics helped them protect their capital. The takeaway for everyone: in unpredictable markets, careful management of liquidity and leverage is essential.

As Bitcoin potentially enters a consolidation period, long-term investors should focus on entering at strong support levels and avoid taking on too much risk in speculative assets. The market’s underlying strength—demonstrated by Bitcoin Bancorp’s Q3 revenue growth and NYDIG’s continued optimism—shows that a disciplined, well-planned approach can still deliver significant gains.

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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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