Bitcoin’s latest drop looked dramatic on the charts, but the real story is much stranger. Instead of panic selling or a sudden shift in sentiment, analysts now believe the move was triggered by one thing: a forced seller slowly draining liquidity from the market. And the data backing this theory is pretty compelling.
What you'll learn 👉
A $200M Sell-Off Caused a $2B Meltdown
Ideologist Shanaka Perera summed it up perfectly in his viral thread: on November 21, only around $200 million worth of actual Bitcoin was sold. Under normal circumstances, a sell order that size shouldn’t move a trillion-dollar asset very much.
But because the market is overloaded with leverage, roughly 90% leverage on top of only 10% real spot liquidity, that relatively small sell order triggered nearly $2 billion in forced liquidations.
THE $200 MILLION LIE: What Really Happened November 21st
— Shanaka Anslem Perera ⚡ (@shanaka86) November 21, 2025
Bitcoin didn’t crash because people sold. Bitcoin crashed because the math broke.
On November 21, 2025, $200 million in actual selling triggered $2 billion in forced liquidations. Read that again. For every real dollar… pic.twitter.com/kdPByrapPG
It was like knocking over the first domino in a line that stretched across the entire market. The result: a huge move caused by synthetic liquidity evaporating all at once, not by people rushing to exit their Bitcoin positions.
A Single Forced Bitcoin Seller Has Been Unwinding Since October 10
Negentropic’s breakdown adds the missing details. He points out that Bitcoin’s indicators don’t look like “panic” at all, they look like mechanical selling.
The 1D MACD just printed a new all-time low while Bitcoin is only down about 33% from the highs. Normally, you only see that kind of extreme reading when everything is blowing up, leverage, funding, derivatives, sentiment. But this time, none of that is happening.
What’s happening in Bitcoin right now isn’t a narrative shift: it’s a mechanical unwind.
— 𝗡𝗲𝗴𝗲𝗻𝘁𝗿𝗼𝗽𝗶𝗰 (@Negentropic_) November 21, 2025
The data is pointing to something very specific:a forced seller that blew up around October 10 and has been offloading in a constrained, systematic way ever since.
Here’s why:
• The 1D…
ETF flows remain positive. Ethereum is holding stronger than Bitcoin. Altcoins aren’t collapsing. There’s no credit shock, no macro panic, no systemic stress.
Instead, the sell pattern has been nearly identical every day since October 10, the same timestamps, the same lack of reflexive buying, the same thin liquidity pockets being targeted.
That fits perfectly with the idea that a fund or liquidity provider blew up and has been unwinding their position on a fixed schedule. It’s not emotional. It’s not fear-based. It’s not the market turning bearish. It’s a cleanup operation.
Bitcoin Didn’t Crash Because Sentiment Broke – It Crashed Because Math Broke
Perera also highlights a bigger problem: Bitcoin now reacts to global financial stress almost exactly like traditional assets. The selloff lined up with tension in Japan’s bond market, not with anything happening inside crypto.
For years, Bitcoin was described as the alternative to traditional finance. But now, when government debt markets wobble, Bitcoin wobbles too. It’s become part of the same system it once claimed to replace. That’s why the drop felt so sudden, it wasn’t crypto-driven at all.
The Rebound Could Be Much Stronger Than the Drop
If this really is just a single forced seller unwinding slowly, then the moment that flow ends, the entire market could snap back sharply. The broader trend still looks healthy: higher highs, higher lows, and strong ETF demand.
Read Also: Retail Is Dumping XRP But Institutions See Something Very Different
Nothing structural has broken. No long-term holders are capitulating. No major liquidity providers have left the market. This isn’t a trend reversal, it’s just temporary pressure from one entity cleaning up a mess.
So the crash wasn’t about fear or a loss of confidence. It was simply the market absorbing a massive, forced sell. And once that selling stops, the rebound could surprise a lot of people.
Subscribe to our YouTube channel for daily crypto updates, market insights, and expert analysis.
