Bitcoin Faces FTX-Level Liquidation Crisis as Long Positions Unwind Rapidly

Bitcoin's Leveraged long positions are experiencing the most significant liquidation surge since the FTX collapse in November 2022, with over $2 billion wiped out in a single day. The cryptocurrency's price has plummeted toward $88,000, testing multi-month lows as short-term holders exit the market. On-chain analytics draw stark parallels to the post-FTX market trauma, highlighting waning marginal demand and heightened stress conditions. This liquidation cascade underscores the fragility of leveraged positions in volatile markets and raises questions about near-term price stability. The current sell-off mirrors historical capitulation events, suggesting the market may be approaching a local bottom or preparing for further downside. As of November 2025, this represents the most severe long squeeze since the FTX debacle, with implications for both spot and derivatives markets.

Bitcoin Long Liquidations Surge to Post-FTX Collapse Levels Amid Market Stress

Bitcoin's leveraged long positions are being unwound at the fastest pace since the FTX collapse, with over $2 billion liquidated in a single day. The cryptocurrency has tumbled toward $88,000, testing multi-month lows as short-term holders exit en masse.

On-chain analytics reveal a striking parallel to November 2022's market trauma. The cascade of liquidations suggests waning marginal demand—a classic stress signal during bull market corrections. Traders attempting to catch the falling knife have instead fueled forced selling.

This leverage flushout represents Bitcoin's most violent shakeout in nearly three years. Market fragility resurfaces as open interest evaporates, though such deleveraging often precedes healthier rallies. The ghosts of FTX still haunt traders' margin calls.

Bitcoin ETF Outflows Hit $2.8 Billion as Long Liquidations Spike to FTX-Era Levels

Bitcoin ETFs have recorded their sharpest outflows of the year, with $2.8 billion withdrawn since November 12. The trend reflects mounting caution among short-term holders as Bitcoin's price slump tests investor resolve.

Leveraged positions are unwinding at levels not seen since the FTX collapse, with $891.5 million exiting ETFs in a single day last week—the largest daily withdrawal this year. New ETF investors, who entered the market during the bullish first half of 2024, now face their first significant stress test as prices dip below their cost basis.

Whales continue accumulating BTC amid the downturn, signaling divergent strategies between institutional players and retail participants. Santiment data reveals this marks the longest continuous outflow period since spot Bitcoin ETFs launched.