Cryptocurrency Markets Rebound Sunday Following Liquidation-Driven Correction

Global cryptocurrency markets registered a notable rebound on Sunday, November 23, 2025, following a severe preceding correction that had pushed major assets into deeply oversold technical territory. This recovery was fundamentally underpinned by Bitcoin flashing an extreme oversold signal on the Relative Strength Index (RSI) and the cleansing effect of substantial derivatives liquidations, which subsequently alleviated acute selling pressure across the ecosystem. The preceding week was characterized by significant downward movement, with Bitcoin having dipped below the $81,000 threshold, a level not seen since April of that year.

Bitcoin (BTC) traded near $86,457 early in the afternoon UTC on Sunday, reflecting an approximate 2.7% gain from earlier lows. This technical bounce aligns with historical precedent, as analyst Ali Martinez observed that previous instances where Bitcoin's RSI dipped into this extreme oversold zone—specifically in 2023 and March 2025—were swiftly followed by short-term price recoveries. The total cryptocurrency market capitalization expanded by 3.29% over the preceding 24 hours, reaching an aggregate valuation of approximately $2.95 trillion. Despite this intraday strength, the broader market sentiment remained fragile, evidenced by the Crypto Fear and Greed Index registering a reading of 10, categorized as 'Extreme Fear,' a level often associated with potential short-term market bottoms.

The sharp price action, both the prior decline and the subsequent rebound, was amplified by thin weekend liquidity, a common factor in volatile Sunday trading sessions. Over the preceding 24 hours, approximately $206.39 million in leveraged positions were liquidated across roughly 117,928 traders, according to data reported by CoinGlass. This deleveraging event is crucial, as the forced closure of long positions helps to remove selling overhang, paving the way for a technical snap-back. Despite this intraday strength, Bitcoin lost about 12% over the past week, and Ether (ETH) year-to-date performance in 2025 showed a decline of nearly 19%.

Specific altcoins demonstrated outsized performance during this recovery, driven by targeted institutional catalysts. Ether (ETH) appreciated by 4.5% to trade around $2,835. More significantly, XRP surged approximately 7.7% to reclaim the $2.00 level, supported by a substantial single-day capital inflow amounting to $7.19 billion, pushing its market capitalization up from $115.30 billion to $122.49 billion in 24 hours. This XRP strength is directly linked to the anticipated debut of the Grayscale XRP ETF (GXRP) on the NYSE Arca, scheduled for November 24, 2025, marking the first simultaneous debut of two major altcoin spot ETFs in the U.S. market alongside the Grayscale Dogecoin ETF (GDOG), both carrying a 0.35% management fee.

Privacy-focused tokens also saw significant upward momentum, with Zcash (ZEC) climbing 14.1% to approximately $574.05, bringing its market capitalization to $9.37 billion on the day. This surge was heavily influenced by the announcement from the OKX exchange regarding the return of Zcash spot trading, scheduled to commence on November 24, 2025, at 20:00 (UTC+8). This relisting represents a notable policy shift for OKX, which had previously delisted ZEC, Monero (XMR), and Dash (DASH) between January 4th and 5th, 2024, as part of a regulatory compliance initiative. The renewed confidence in ZEC is further supported by an updated roadmap from the Electric Coin Company and increased activity in shielded transactions.

The confluence of technical oversold conditions, derivatives cleansing, and specific institutional events—like the Grayscale ETF conversion and the OKX relisting—created a potent, technically driven, short-term reversal for the digital asset space on November 23, 2025.