The Billion Crash: How the Falling Crypto Liquidated Fortunes in Just a Few Weeks

When Bitcoin (BTC) reached its all-time high near US$ 126,000, it seemed like the market had no limits. But reality was quite different. In less than a month, the cryptocurrency market wiped out over US$ 1 trillion in value, leaving investors in shock and accounts wiped out.

The Fall of Bitcoin and Ethereum

Bitcoin took the hardest hit, plunging 27% from its peak to touch US$ 88,500 on November 20 — a low not seen in seven months. The decline was not isolated: Ethereum (ETH) also turned red with a 24% devaluation, falling below US$ 3,000. Other leading cryptocurrencies followed the downward trend with comparable losses.

The Culprits Behind the Crypto Drop

Before this carnage, the market was fueled by hope: investors bet on cuts in American interest rates and massive institutional capital inflows. These expectations kept prices high. But when these scenarios did not materialize — or lost strength — the effect was devastating.

The trigger came from the crashes on October 10 and 11, which triggered over US$ 19 billion in leveraged liquidations at once. Those with leveraged positions were forced to liquidate, amplifying the decline and spreading panic across the market.

Where Are We Now?

With the latest data, BTC hovers around US$ 90,000, showing the characteristic volatility of this depressed market phase. Ethereum remains equally unstable. The falling crypto continues its course, and market sentiment remains fragile as investors try to understand whether the worst is over or if more pain lies ahead.