The sharp crash in the cryptocurrency market on November 13, 2025, resulted from a combination of negative macroeconomic signals, such as fading hopes for Fed rate cuts and worrying data from China, coupled with internal market fragility characterized by excessive leverage and massive institutional capital outflow, despite historically positive events like the debut of the XRP ETF and the Czech National Bank's Bitcoin purchase.
Multifaceted Causes and Effects of the Cryptocurrency Market Crash on November 13, 2025
1.0 Introduction: Context and Significance of the Market Shock
The events of November 13, 2025, constitute one of the most significant shocks to the digital asset market in recent months. The sudden and deep correction, which dragged down leading cryptocurrencies, triggered a cascade of liquidations of leveraged positions and pushed investor sentiment to a level of extreme fear. The purpose of this report is to conduct an in-depth and objective analysis of the complex factors that led to this collapse. The analysis should begin with a precise measurement of the scale and dynamics of the declines, which are fundamental to understanding the gravity of this market shock.
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2.0 Anatomy of the Crash: Scale and Dynamics of Market Declines
The strategic importance of analyzing specific market indicators on the day of the crash cannot be overstated. Understanding the scale of price drops, liquidation volume, and prevailing investor sentiment is crucial for an objective assessment of the seriousness of the event and its direct impact on market participants. The data below paints a picture of a market under enormous pressure, where panic led to a cascade of position closures.
2.1 Sharp Devaluation of Key Digital Assets
The sudden sell-off primarily affected the largest digital assets, which breached key psychological and technical levels, causing a domino effect across the entire market.
| Asset | Key Price Levels | Percentage Decline |
|---|---|---|
| Bitcoin (BTC) | Drop below $100,000 to approximately $98,000-$99,000 USD | over 2-3% |
| Ethereum (ETH) | Drop below $3,500 to approximately $3,180-$3,200 USD | 7-10% |
| Solana (SOL) | Drop below $150 to approximately $141-$145 USD | approx. 5% |
2.2 Liquidation Cascade and Extreme Investor Panic
Price drops were drastically amplified by massive, forced closures of leveraged positions. The total volume of liquidations within 24 hours reached from $500 million to over $1 billion USD. Long positions, betting on increases, accounted for an overwhelming share of this amount, with liquidations totaling from $411 million to $887 million USD.
This liquidation cascade created a self-fueling loop, where forced selling lowered prices, which in turn triggered further liquidation orders, rapidly compounding the downward pressure. It is estimated that approximately 235,000 traders were affected, with the largest single liquidation amounting to $44 million USD on a long BTC position on the HTX exchange.
The level of market panic is best illustrated by the drop in the Fear and Greed Index, which reached just 15 points on November 13. This is the lowest reading in seven months, signaling "extreme fear". Crucially, this level is lower than that observed during the historical collapse of the FTX exchange (approx. 20 points), indicating even deeper pessimism among investors. Despite such an unequivocally negative picture, surprising positive fundamental signals also appeared on the market, standing in sharp contrast to the widespread sell-off.
3.0 Paradoxes of November 13: Contrasting Market Narratives
The simultaneous occurrence of extremely negative and positive signals sheds light on the maturity of the industry and the different perspectives of its participants.
3.1 Historical Debut of the XRP ETF Fund in the Shadow of Declines
In paradoxical contrast to the market slump, November 13 was the day of the historical debut of the first spot XRP ETF in the United States. The XRPC fund, launched by Canary Capital, recorded phenomenal success:
- Trading volume on the first day amounted to $58 million USD.
- Capital inflows reached almost $250 million USD.
These results made XRPC the strongest ETF fund debut in all of 2025, surpassing the initial performance of funds based on Bitcoin and Ethereum. Despite such strong institutional interest, the price reaction was a classic example of the "sell-the-news" phenomenon. The price of the XRP token itself fell by 2.7%, and the ETF units, after peaking at $27 USD, ended the day with a loss of 8%.
3.2 Pioneering Decision by the Czech National Bank
On the same day, the Czech National Bank (CNB) announced the creation of a $1 million USD test digital asset portfolio. This portfolio includes Bitcoin, stablecoins, and tokenized deposits. This decision is historic because the CNB became the first central bank to directly purchase Bitcoin.
Governor Aleš Michl stated that the project's goal is to "test decentralized bitcoin from a central bank perspective and assess its potential role in diversifying our reserves". The central bank emphasized that the purchase was made outside of existing international reserves, positioning this initiative as a strategic experiment.
Despite these positive signals, negative factors dominated the market sentiment.
4.0 Analysis of Causes: Deconstructing the Catalysts for Declines
The market collapse of November 13 should be interpreted as the culmination of a confluence of negative forces of a macroeconomic, structural, and institutional nature.
4.1 Macroeconomic Headwinds – Fed Policy and China Data
Sentiment in global markets remained strongly influenced by two key macroeconomic factors:
- US Federal Reserve Policy: Fading hopes for an interest rate cut in December constituted a significant brake on risky assets. Markets began pricing the probability of a December cut at below 50%, which weakened investor appetite for cryptocurrencies.
- Weak Economic Data from China: Unexpectedly weak data from the Chinese economy raised concerns about a global slowdown. Industrial production slowed to 4.9% y/y, and fixed asset investments recorded a historical contraction of 1.7%, which immediately translated into risk aversion.
4.2 Systemic Gaps and Institutional Investor Retreat
Internal weaknesses in the digital asset market played a crucial role in amplifying the declines:
- Excessive Financial Leverage: An unhealthy dynamic was observed—positive funding rates in the futures market alongside a drop in spot market volumes. This configuration created fertile ground for sharp downward price movements, which triggered a liquidation cascade.
- Credit Risks: Greg Magadini of Amberdata warned about the risks associated with Digital Asset Treasuries (DATs), which rely on credit markets to finance operations. A potential freezing of these markets could force them into distress selling of digital assets, posing a significant systemic risk.
- Institutional Capital Outflow: ETF data indicates weakening demand from large players. On November 13 alone, outflows of $866 million USD from Bitcoin ETF funds were recorded, fitting into a broader trend where over $1 billion USD had already been withdrawn throughout the month. An additional $260 million USD flowed out of Ethereum ETF funds on the same day.
5.0 Market Perspectives and Key Observations
Placing the events of November 13 in the broader financial and regulatory context is essential for formulating a complete picture of the situation.
5.1 Divergence with Traditional Assets: Rise in Precious Metal Prices
While the cryptocurrency market experienced a sharp devaluation, precious metals, traditionally viewed as "safe havens," recorded solid gains. In November, gold gained 4%, and silver gained as much as 9%. These gains were driven by growing concerns about the fiscal health of major world economies.
5.2 Regulatory Environment and DeFi Sector Development
On the regulatory front in the United States, work resumed after the end of the government shutdown. Regulators such as the SEC and CFTC returned to analyzing legal frameworks for cryptocurrencies. The Senate Committee on Agriculture published a preliminary draft bill aimed at regulating spot markets.
Simultaneously, in the decentralized finance (DeFi) sector, Vitalik Buterin stated that thanks to network scalability improvements, DeFi has achieved the maturity necessary to treat it as a viable savings mechanism, accessible even to small users.
5.3 Analyst Forecasts and Technical Support and Resistance Levels
Analysts' opinions regarding the future of the market remain divided. Paul Howard suggested that we might have already seen the price peaks for 2025. Conversely, Mel Mattison is optimistic, predicting a return of liquidity and a "tsunami of fiscal generosity" from the new Trump administration.
Key price levels are:
- Bitcoin (BTC): Support: $94,000 - $98,000 USD; Resistance: $100,000 - $103,000 USD.
- Ethereum (ETH): Support: $3,053 - $3,300 USD; Resistance: $3,500 - $3,650 USD.
- Solana (SOL): Support: $142 - $144 USD; Resistance: $150 - $157 USD.
6.0 Summary and Final Conclusions
The crash of November 13, 2025, was a multi-factor event. It resulted from a confluence of negative macroeconomic signals, internal market fragility caused by excessive financial leverage, and a sharp outflow of institutional capital. The downward pressure was amplified by a cascade of liquidations in the derivatives market.
Paradoxical events, such as the successful debut of the XRP ETF and the pioneering decision of the Czech National Bank to include Bitcoin in its test portfolio, underscore the growing complexity and maturity of the market. They signal that fundamental interest in digital assets from financial and state institutions continues to grow, despite short-term volatility.
The future direction of the market will depend on the outcome of the clash between two powerful forces: short-term pressure resulting from macroeconomic uncertainty and the long-term, fundamental trend of institutional adoption. The Federal Reserve's December decisions will be the first crucial test of market resilience.
Frequently Asked Questions (FAQ)
What was the main cause of the cryptocurrency market crash on November 13, 2025?
The main cause of the crash was a combination of macroeconomic factors—including fading hopes for a Fed interest rate cut and the historical contraction of fixed asset investments in China—and internal systemic gaps in the cryptocurrency market, especially excessive financial leverage and a massive outflow of institutional capital from ETF funds.
What was the scale of the liquidation of leveraged positions on that day?
The total volume of forced liquidations within 24 hours on November 13 reached from $500 million to over $1 billion USD. The vast majority of this amount ($411 million to $887 million USD) concerned long positions, which were bets on increases. It is estimated that approximately 235,000 traders were affected by this phenomenon.
Were there any positive fundamental events on the day of the crash?
Yes, two historically positive events occurred on the day of the crash that contrasted with the panic:
- The Debut of the XRP ETF (XRPC): This was historically the strongest ETF fund debut in 2025, with capital inflows reaching nearly $250 million USD, despite the price of the token itself falling (the "sell-the-news" phenomenon).
- The Decision of the Czech National Bank (CNB): The CNB announced the creation of a $1 million USD test digital asset portfolio, becoming the first central bank to directly purchase Bitcoin.
What macroeconomic factors contributed to risk aversion?
Key macroeconomic factors that contributed to risk aversion were declining expectations for monetary policy easing by the US Federal Reserve (where the probability of a December rate cut fell below 50%) and unexpectedly weak economic data from China, including a historical contraction in fixed asset investments of 1.7%.
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