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Bitcoin News Update: Short Sellers Hit Hard as $341M in Crypto Liquidations Sparks Volatility Spike

Bitcoin News Update: Short Sellers Hit Hard as $341M in Crypto Liquidations Sparks Volatility Spike

Bitget-RWA2025/11/11 12:34
By:Bitget-RWA

- Bitcoin's $106,000 surge triggered $341.85M in crypto liquidations, with short sellers losing $106.75M as leverage-driven volatility spiked. - Senate's shutdown resolution boosted Bitcoin 3.93% in 24 hours, alleviating regulatory uncertainty and injecting market optimism. - Hyperliquid's $18.96M single liquidation highlighted risks of 1,001:1 leverage, as platforms amplified price swings through stop-loss mechanisms. - November's $20B in crypto derivatives liquidations revealed systemic fragility, with E

Within a single day, the cryptocurrency market saw liquidations reach $341.85 million as

surged beyond $106,000, causing a chain reaction of losses among traders using leverage. This surge in liquidations—fueled by both short squeezes and the collapse of long positions—emphasized the vulnerability of leveraged trading in such a turbulent environment. Those betting against Bitcoin’s price, expecting it to fall further, suffered the most, with $106.75 million in short positions liquidated, compared to $9.22 million for longs, according to . The most significant single liquidation, valued at $18.96 million on Hyperliquid, highlighted the dangers of excessive leverage, as detailed in the same report.

This price rally contradicted the prevailing bearish outlook. Many traders had expected Bitcoin’s decline to continue after ETF outflows and a 40-day U.S. government shutdown raised liquidity fears, according to Yahoo Finance. Yet, the Senate’s passage of a funding bill to end the shutdown sparked renewed optimism, lifting Bitcoin by 3.93% in just 24 hours, as reported by

. The resolution also eased regulatory concerns, with analysts suggesting it could prompt a short-term relief rally, as mentioned in that update.

Throughout November 2025, volatility driven by leverage continued, with $20 billion in crypto derivatives liquidated as Bitcoin dipped under $100,000, according to

. Exchanges such as Hyperliquid and , which allow leverage up to 1,001:1, came under fire for intensifying price volatility through automated stop-loss triggers, the Bitget report observed. , which experienced $92.01 million in liquidations, also dropped to its lowest point in four months as the losses rippled across the sector, according to the Bitget report.

Investor sentiment showed a shift in risk tolerance. While U.S. crypto funds saw $1.17 billion withdrawn, European markets remained steady, with Germany and Switzerland recording inflows, as noted by Crypto.news. Some altcoins, such as

, defied the broader trend, attracting $118 million in new investments as institutional interest increased, according to the Crypto.news update. At the same time, short Bitcoin ETPs received $11.8 million in new funds—the highest since May—as traders sought protection against further declines, as reported in the Crypto.news update.

Regulatory shifts further contributed to market uncertainty. The CFTC’s proposal for leveraged spot crypto products and a Senate draft bill to clarify the roles of the SEC and CFTC aimed to bring more structure to the derivatives space, according to the Bitget report. Still, analysts cautioned that key issues—like unchecked leverage and fragmented regulation—have yet to be addressed, the Bitget report stated.

The total value of the crypto market bounced back to $3.56 trillion, marking a 3.91% rise as investor confidence improved, according to Yahoo Finance. However, the Crypto Fear & Greed Index stayed at 26, indicating ongoing caution, as per the Crypto.news update. Experts warned that while Bitcoin’s $106,000 milestone brought short-term hope, lasting growth would rely on the Federal Reserve’s policy decisions and global political stability, as highlighted in the Crypto.news update.

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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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