Cryptocurrency traders maintained positions after $2 billion in liquidations in November.

Source: Yellow Original Title: Cryptocurrency traders maintained positions after $2 billion liquidations in November

Original Link: Cryptocurrency traders maintained their positions despite $2 billion in liquidations on November 21, marking a shift from historical patterns where similar events triggered massive sell-offs.

Coinglass data shows that 391,000 traders lost positions when Bitcoin (BTC) plummeted from $92,000 to $81,050.

Long positions accounted for $1.780 billion of the liquidations, compared to only $129 million in shorts.

Bitcoin led with 960 million dollars in liquidations, followed by Ethereum (ETH) with 403 million and Solana (SOL) with 100 million.

What happened

The Crypto Fear & Greed Index fell to 11, matching extreme fear levels last seen during the FTX collapse in November 2022.

Bitcoin ETFs recorded outflows of $3.79 billion in November, surpassing the previous record set in February.

However, open interest data reveals significant behavioral changes among derivatives traders.

The analysis shows that the total open interest in perpetuals and futures fell by 17% from the highs of late October during the first waves of liquidations.

After this first deleveraging, open interest stopped falling despite the continued price volatility and moved sideways throughout November.

This sharply contrasts with the market crash on October 10, when open interest plummeted by 37% while Bitcoin fell from 124,670 to 110,780 dollars.

The data shows that traders are increasingly checking margin call thresholds, liquidation levels, and financing costs during volatility.

The pattern suggests that participants recalibrated their exposure instead of completely closing their positions.

The funding rates have cooled from persistently positive levels until the end of October, as cascading forced liquidations prompted deleveraging.

This shift to negative rates made holding positions more affordable for traders who remained.

Why it is important

The November liquidation event demonstrates greater maturity in the cryptocurrency derivatives markets.

Major liquidation events no longer automatically trigger a massive exit of leveraged positions.

In contrast, traders seem willing to absorb the volatility and adjust their margin levels rather than reflexively closing positions.

This change in behavior towards a more deliberate risk management during periods of stress marks a break from previous cycles dominated by reactive trading.

Market observers interpret this as evidence that leverage is still widely used, but the approaches are becoming more cautious and sophisticated.