Crypto News Today: Market Plummets as China’s Devastating Ban and Massive ETH Dump Collide
Global cryptocurrency markets experienced a severe contraction on Friday, November 21, 2025, as a trifecta of negative catalysts—a sweeping new regulatory ban from China, a massive institutional Ethereum liquidation, and plummeting investor sentiment—drove Bitcoin below the critical $60,000 support level for the first time in months. This day’s crypto news today reveals a market under significant stress, grappling with both external policy shocks and internal deleveraging pressures.
Crypto News Today: China’s Sweeping Stablecoin and RWA Ban
The People’s Bank of China (PBOC), in conjunction with seven other major regulatory bodies, issued a definitive joint statement prohibiting the unapproved issuance of yuan-pegged stablecoins and tokenized real-world assets (RWAs). Consequently, this move formalizes and extends China’s longstanding anti-cryptocurrency stance into new digital asset categories. According to the announcement, no entity or individual, domestic or foreign, may create Renminbi-linked stablecoins without explicit regulatory approval.
Furthermore, the policy explicitly targets offshore versions tied to the yuan, effectively closing a perceived loophole that some market participants had used to facilitate crypto-related activities in regions bordering China. Authorities categorize the conversion of real assets into tradable tokens without approval as potentially illegal financial activity. Analysts view this action as a strategic effort to insulate China’s formal financial system from speculative digital assets while simultaneously promoting the state-sanctioned digital yuan (e-CNY).
The Global Impact of China’s Regulatory Stance
Historically, China’s policy announcements have created substantial volatility in digital asset markets. This latest development signals a hardening stance against financial innovation perceived as outside state control. The ban directly impacts global RWA projects with any Chinese nexus or yuan exposure, potentially forcing a rapid restructuring or exit from related services. Market observers note that this action may encourage other jurisdictions to clarify their own positions on stablecoin and RWA regulation, creating a new layer of geopolitical risk for the asset class.
Trend Research’s Massive Ethereum Liquidation Event
Simultaneously, blockchain data revealed a staggering sell-off by the institutional Ethereum investment vehicle, Trend Research. The entity dramatically reduced its Ether exposure, transferring over 411,075 ETH to cryptocurrency exchange Binance since the start of the month to mitigate rising liquidation risks. Arkham Intelligence data shows Trend Research’s holdings of Aave-wrapped Ether (AETHWETH) plummeted from approximately 651,170 ETH to about 247,080 ETH within a week.
This sell-off occurred alongside a nearly 30% decline in the price of ETH, which briefly touched $1,748. The liquidation pressure appears linked to the entity’s leveraged strategy. Reportedly, Trend Research, associated with Liquid Capital founder Jack Yi, employed a recursive collateralization model: purchasing ETH, using it as collateral on Aave to borrow stablecoins, and then using those funds to acquire more ETH. The recent price downturn triggered margin calls, forcing the substantial asset dump.
| Metric | Data |
|---|---|
| Starting ETH Balance (AETHWETH) | ~651,170 ETH |
| ETH Transferred to Binance | ~411,075 ETH |
| Ending ETH Balance | ~247,080 ETH |
| ETH Price Decline During Period | ~30% |
| Low Price Reached | $1,748 |
Crypto Market Sentiment Crashes to Multi-Year Lows
The compounding negative news flow crushed overall market psychology. The widely-followed Crypto Fear & Greed Index collapsed to a score of 9 out of 100, marking its lowest level since June 2022—a period dominated by the fallout from the Terra blockchain collapse. This reading indicates a state of “Extreme Fear” among investors. The sentiment breakdown coincided with Bitcoin’s sharp descent, which saw the asset lose over $10,000 in 24 hours, its largest single-day dollar decline since mid-2022.
Bitcoin briefly traded around $60,000 on major exchanges, a more than 50% retracement from its early-October peak near $126,000. This drawdown occurred in parallel with a significant sell-off in U.S. technology stocks, suggesting a correlation with broader risk-off movements in global markets. Jeff Ko, Chief Analyst at CoinEx Research, contextualized the move for CryptoNewsInsights, linking it to concerns over “stretched valuations and lingering concerns around an artificial intelligence-driven bubble” in tech equities.
Analyzing the Fear & Greed Index Plunge
The Fear & Greed Index synthesizes data from volatility, market momentum, social media sentiment, surveys, and dominance trends. A drop to single digits is rare and typically signifies capitulation, where exhausted sellers exit positions regardless of price. Historically, such extreme readings have sometimes preceded market bottoms, but they also reflect high levels of stress and potential for continued volatility as leveraged positions unwind.
Conclusion
Today’s crypto news today paints a picture of a market facing a powerful convergence of headwinds. China’s definitive ban on unauthorized stablecoins and RWAs represents a significant regulatory hardening, removing ambiguity for global projects. Meanwhile, the forced liquidation of over 400,000 ETH by Trend Research illustrates the fragility of highly leveraged strategies in a declining market. Together, these events catalyzed a collapse in market sentiment to levels not seen since the last major crypto downturn. As Bitcoin tests the $60,000 level, the market’s immediate future hinges on whether this represents a climactic sell-off or the beginning of a deeper corrective phase. The day’s events underscore the interconnected nature of regulation, institutional activity, and trader psychology in the volatile cryptocurrency landscape.
FAQs
Q1: What exactly did China ban in its latest crypto announcement?
The People’s Bank of China and other regulators banned all unapproved issuance of yuan-pegged stablecoins and tokenized real-world assets (RWAs) by any entity, domestic or foreign, including offshore versions. This formalizes existing restrictions and expands them to cover asset tokenization.
Q2: Why did Trend Research sell so much Ethereum?
Trend Research sold over 400,000 ETH primarily to repay loans and avoid liquidation on the Aave protocol. The company used a leveraged strategy where borrowed funds were used to buy more ETH, and the recent price drop triggered margin calls, forcing the asset sale.
Q3: What does a Crypto Fear & Greed Index score of 9 mean?
A score of 9 indicates “Extreme Fear” among market participants. It is a composite measure based on volatility, momentum, social media, surveys, and dominance. This was the lowest reading since June 2022, reflecting severe negative sentiment and potential investor capitulation.
Q4: How low did Bitcoin price fall in this crash?
Bitcoin’s price hit a 24-hour low of approximately $60,000 on major exchanges like Coinbase. This represented a decline of over 13% in a day and a more than 50% drop from its all-time high near $126,000 recorded in early October 2025.
Q5: Are stablecoins and RWAs now completely illegal in China?
The ban applies to *unapproved* issuance. The Chinese state’s own digital currency project, the e-CNY, continues to operate. The regulation aims to curb private, speculative digital asset creation while maintaining state control over the monetary system. Approved projects under strict regulatory oversight might theoretically exist, but the barrier is now exceptionally high.
