BTC’s 25% slide from $126,000 to $93,000 is being labeled in some quarters as the formal start of a new bear market.
A 41-day liquidation cascade erased $1.1 trillion from the crypto market, marking one of the most severe structural contractions in its history, according to an analysis by Shanaka Anslem Perera.
The industry observer is framing the wipeout as the end of the high-leverage era and the beginning of a more institution-driven trading environment for the asset class.
The Mechanics of a Market Reset
Perera’s research showed that between October 6 and November 17, digital asset venues shed about $27 billion in value per day, with the expert describing the episode as a “structural reset” rather than a normal cycle correction.
In that time, Bitcoin fell from an all-time high above $126,000 to lows around $93,000, a drop of roughly 25%, which, in the analyst’s opinion, formally pushed the number one cryptocurrency into a decisive downturn phase.
“Bitcoin, the bellwether cryptocurrency, plummeted from its October peak of $126,270 to a November low near $93,000, representing a 25% decline that technically qualifies as bear market territory,” he wrote.
Derivatives data show how exposed the crypto space was. Open interest in BTC perpetual futures had climbed above $40 billion by early October, with funding rates signaling extreme long positioning. But when macro pressure hit, including tightening dollar liquidity, a 43-day U.S. government shutdown, and trade frictions, high-leverage longs began to unwind.
A liquidation event on October 10 alone resulted in the loss of around $19.2 billion, marking the largest forced closure in crypto history.
The stress continued into mid-November, with BTC dipping to just above $93,000 on November 16 after trading near $106,500 earlier in the week. The drop came even as U.S. Treasury Secretary Scott Bessent hinted a U.S.-China trade deal could be signed before Thanksgiving.
You may also like:
The pain was felt across the board. Ethereum (ETH) is currently priced near $3,200 after a more than 12% drop in the last seven days, while majors like XRP, BNB, and Solana (SOL) have dropped between 8% and 17% over the same period, per CoinGecko data.
According to Perera, the root cause was a trading arena oversaturated with leverage. He explained that with traders employing leverage ratios of 50x or even 100x, a mere 1-2% adverse price movement was enough to trigger automatic liquidations.
From Halving Cycles to Macro Liquidity Gauge
For many analysts, the bigger story is what this episode says about how crypto now works. In his report, Perera echoed previous analysis from K33 Research, arguing that Bitcoin’s famous four-year halving rhythm has been “invalidated” by the rise of spot ETFs and deepening institutional strategies, from basis trades to treasury holdings. Instead of depending on retail-driven fluctuations, BTC now reacts more directly to dollar liquidity, interest-rate expectations, and equity volatility.
His opinion was mirrored by The Kobeissi Letter, which also described the happenings in crypto as a “structural move,” pointing to a new regime where leverage and liquidations dictate behaviour. However, the financial commentary account reminded followers that new highs have eventually followed every 25%+ drop in crypto history.
Meanwhile, on-chain and sentiment data hint that the market may be moving from forced selling to quiet accumulation. The Fear and Greed Index fell to 10 over the past weekend, its lowest reading since February, while stablecoin supply has expanded by nearly $20 billion this year, dry powder that often enters the space after sharp corrections.
SECRET PARTNERSHIP BONUS for CryptoPotato readers: Use this link to register and unlock $1,500 in exclusive BingX Exchange rewards (limited time offer).
