{"id":16106,"date":"2025-11-17T16:31:02","date_gmt":"2025-11-17T16:31:02","guid":{"rendered":"https:\/\/bitunikey.com\/news\/crypto-meltdown-1-1-trillion-wiped-out-in-41-days-as-leverage-fuels-frenzy\/"},"modified":"2025-11-17T16:31:25","modified_gmt":"2025-11-17T16:31:25","slug":"crypto-meltdown-1-1-trillion-wiped-out-in-41-days-as-leverage-fuels-frenzy","status":"publish","type":"post","link":"https:\/\/bitunikey.com\/news\/crypto-meltdown-1-1-trillion-wiped-out-in-41-days-as-leverage-fuels-frenzy\/","title":{"rendered":"Crypto meltdown: $1.1 trillion wiped out in 41 days as leverage fuels frenzy"},"content":{"rendered":"<p><\/p>\n<div class=\"post-detail__content blocks\">\n<p class=\"is-style-lead\">President Trump recently declared that making America \u201cnumber one in crypto\u201d is a top priority. This lofty goal hasn\u2019t exactly helped Bitcoin, which has plummeted 25% in just one month, leaving Americans juggling <a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/www.ft.com\/content\/5b2e8aa2-e26d-4094-aa77-c4c7c9e5865e\" target=\"_blank\" rel=\"nofollow\">inflation<\/a>, <a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/www.businessinsider.com\/new-trump-cfpb-decision-make-future-student-loan-forgiveness-harder-2025-11\" target=\"_blank\" rel=\"nofollow\">student loans<\/a>, and <a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/thehill.com\/homenews\/senate\/5605032-senate-republicans-divided-health-premiums\/\" target=\"_blank\" rel=\"nofollow\">health care premiums<\/a> while watching digital gold stumble.<\/p>\n<div id=\"cn-block-summary-block_2b63ce738915bd7a26db73b74a56287e\" class=\"cn-block-summary\">\n<div class=\"cn-block-summary__nav tabs\">\n        <span class=\"tabs__item is-selected\">Summary<\/span>\n    <\/div>\n<div class=\"cn-block-summary__content\">\n<ul class=\"wp-block-list\">\n<li>Despite Trump\u2019s push for America to lead in crypto, Bitcoin has plunged 25% in the past month.<\/li>\n<li>Institutional outflows and extreme leverage have amplified liquidations, creating a volatile and hypersensitive market.<\/li>\n<li>Ethereum and other altcoins have also taken heavy losses, while safe-haven gold has outperformed Bitcoin, highlighting investor caution.<\/li>\n<\/ul><\/div>\n<\/div>\n<p><!-- .cn-block-summary --><\/p>\n<p>Crypto markets have endured a staggering decline over the past six weeks, erasing $1.1 trillion in market capitalization \u2014 or roughly $27 billion per day \u2014 according to The Kobeissi Letter, a financial research and commentary platform. <\/p>\n<p>The total crypto market is now about 10% below levels seen during the record $19 billion liquidation on October 10, marking what analysts are calling a structural and mechanical downturn.<\/p>\n<p>The selloff has been puzzling for some, given that fundamentals remain largely intact. The Kobeissi Letter <a rel=\"nofollow\" target=\"_blank\" rel=\"nofollow\" href=\"https:\/\/x.com\/kobeissiletter\/status\/1990172348834832454\">points<\/a> to institutional outflows beginning in mid-to-late October as a key catalyst. Crypto funds reportedly saw $1.2 billion in outflows in the first week of November, a movement magnified by extreme leverage common in the market.<\/p>\n<p>Crypto leverage allows speculators to take positions 20x, 50x, or even 100x their capital. In this environment, even a 2% move can trigger mass liquidations, creating a domino effect across the market. <\/p>\n<p>October 10th\u2019s $19.2 billion liquidation led to the first-ever $20,000 BTC daily candlestick, illustrating just how sensitive leveraged markets have become. Over the last 16 days alone, there have been three days with liquidations exceeding $1 billion, and daily liquidations of $500+ million have become the new normal.<\/p>\n<p>The volatility has also shaken sentiment. The Crypto Fear &amp; Greed Index has plummeted to 10, \u201cExtreme Fear\u201d, tying the low seen in February \u2014 even as Bitcoin (BTC) is up 25% since April\u2019s bottom. Meanwhile, traditional safe-haven gold has outperformed Bitcoin by 25 percentage points since early October.<\/p>\n<p>The slump is particularly severe outside of Bitcoin. Ethereum (ETH) is now down 8.5% year-to-date, with a 35% drop since October 6th, underscoring the depth of the selloff despite a broader rally in risky assets.<\/p>\n<p>Despite the carnage, The Kobeissi Letter remains cautiously optimistic, stating, \u201cWe think the bottom is near.\u201d<\/p>\n<p>Here\u2019s the Kobeissi thread:<\/p>\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\">\n<div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">What is happening in crypto?<\/p>\n<p>Over the last 41 days, crypto has erased -$1.1 trillion in market cap, or -$27 billion PER DAY.<\/p>\n<p>Crypto market cap is now ~10% BELOW levels seen during the record -$19 billion liquidation on October 10th.<\/p>\n<p>This is a structural move. Let us explain. <a rel=\"nofollow\" target=\"_blank\" rel=\"nofollow\" href=\"https:\/\/t.co\/5JXKFSCPXV\">pic.twitter.com\/5JXKFSCPXV<\/a><\/p>\n<p>\u2014 The Kobeissi Letter (@KobeissiLetter) <a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/twitter.com\/KobeissiLetter\/status\/1990172348834832454?ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"nofollow\">November 16, 2025<\/a><\/p><\/blockquote>\n<\/div>\n<\/figure>\n<p>    <!-- .cn-block-related-link --><\/p><\/div>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n","protected":false},"excerpt":{"rendered":"<p>President Trump recently declared that making America \u201cnumber one in crypto\u201d is a top priority. This lofty goal hasn\u2019t exactly helped Bitcoin, which has plummeted 25% in just one month,&hellip;<\/p>\n","protected":false},"author":1,"featured_media":16107,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-16106","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cryptocurrency"],"_links":{"self":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/16106","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/comments?post=16106"}],"version-history":[{"count":1,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/16106\/revisions"}],"predecessor-version":[{"id":16108,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/16106\/revisions\/16108"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/media\/16107"}],"wp:attachment":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/media?parent=16106"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/categories?post=16106"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/tags?post=16106"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}