Cryptocurrency market had a "black opening" in November, with Ethereum dropping nearly 9% and the total amount of liquidations on the entire network exceeding $1.2 billion.

The cryptocurrency market had a rough start in November, with both Bitcoin and Ethereum experiencing significant declines, leading to massive liquidations and putting pressure on market confidence once again. Against the backdrop of a lack of macroeconomic catalysts, investor sentiment has clearly shifted towards defense, and trading structures are showing a stronger inclination towards risk aversion. Bitcoin prices fell by over 3% on Monday, dropping from $108,000 to $105,000 in a short-term crash, breaking below the 200-day moving average and prompting market attention to the key support level below $100,000. The selling pressure in this round mainly came from long-term holders, with around 400,000 bitcoins (approximately 2% of the circulating supply) being sold in October. However, the Bitcoin price did not see a deeper retracement, indicating that there is still demand support. Analysts point out that the new market structure, including spot ETFs, large fund accounts, and long-term savings wallets absorbing supply, is different from past cycles, leading to slightly less volatility, but "resilience does not equal reversal." Until there is a positive change in the macro environment, it is difficult to say that the rebound certainty has been established. Ethereum's decline was even more severe, with a maximum intraday decline of nearly 9%, breaching the key support level of $3,600 and accumulating a total decline of about 25% since the high point of $4,885 in August. Funding pressures are also evident: funding rates for perpetual contracts have been weakening since mid-October, with several exchanges turning negative, indicating that short-sellers need to pay for their positions, reflecting a growing bearish sentiment in the market. Deribit data shows a significant increase in put options for Ethereum expiring on November 28, particularly concentrated at strike prices below $3,700, $3,500, and $3,000, indicating that more traders are betting on further declines. In addition to the technical and market pressures, sudden security events have also affected investor sentiment. DeFi protocol Balancer, a decentralized finance project on the Ethereum network, reported a hack on Monday, with losses potentially exceeding $100 million, becoming the latest in a series of negative events in recent weeks. Meanwhile, stocks related to cryptocurrency also experienced pressure, with Circle (CRCL.US) falling by over 7%, Coinbase (COIN.US) by over 3.8%, and MicroStrategy (MSTR.US) by 1.8%. Looking at derivative and liquidation data, the market's destructive power is evident. Coinglass data shows that in the past 24 hours, a total of 319,433 positions were liquidated, amounting to over $1.2 billion, with long positions accounting for over 90%, reaching $1.1 billion, while short positions liquidated only around $115 million. Within just one hour of the short-term plunge in Bitcoin and Ethereum, the total liquidation amount exceeded $100 million.