Crypto Market Plunge Wipes $1.16B in Liquidations

The cryptocurrency market opened November with a devastating sell-off that wiped out approximately $1.16 billion in leveraged positions within 24 hours, according to data from CoinGlass. Bitcoin fell 4% to $105,699, marking its lowest price level since October 17, while Ethereum plunged about 7% to $3,583—reaching a nearly three-month low. The downturn represents a continuation of October’s disappointing performance that failed to deliver the traditional “Uptober” gains crypto investors had anticipated.

Altcoins suffered even more severe losses, with XRP falling about 7% to $2.33, while BNB, Solana, and Dogecoin all showed daily declines around 9%. The widespread nature of the sell-off indicates broad-based market weakness rather than isolated asset-specific issues. The timing is particularly concerning for traders who had hoped November would bring relief after October’s underwhelming performance.

The liquidation data reveals the extent of trader pain, with $1.08 billion of the $1.16 billion in wiped-out positions being long positions—bets that asset prices would rise. This overwhelming majority of long liquidations suggests traders were caught off-guard by the sudden market reversal. Bitcoin and Ethereum led the liquidation carnage, with approximately $298 million and $273 million worth of positions liquidated respectively.

The concentration of long position liquidations indicates that market sentiment had been predominantly bullish heading into the downturn. Many traders appear to have been positioned for a recovery after October’s disappointing performance, only to be caught in a sharp reversal that triggered massive forced selling through liquidation mechanisms. This created a feedback loop where liquidations accelerated price declines, leading to further liquidations.

Cryptocurrency’s latest plunge occurred as traditional stock indices like the Nasdaq and S&P 500 remained in positive territory, highlighting a significant divergence between crypto and traditional financial markets. The absence of obvious catalysts for such sizable crypto losses has left analysts searching for explanations. The disconnect suggests that crypto-specific factors, rather than broad macroeconomic concerns, may be driving the current downturn.

Noted pseudonymous analyst Maartunn from CryptoQuant pointed to potential factors on social media platform X, including sell pressure from U.S. spot Bitcoin traders and “signs of fragility” in the Ethereum charts. These technical and market structure issues appear to be affecting crypto markets independently of traditional equity performance, indicating the asset class may be developing its own distinct drivers and risk factors.

The sell-off began accelerating late Sunday following weekend remarks from U.S. Treasury Secretary Scott Bessent about the impact of high interest rates on the economy. Bessent stated that “parts of the economy” may have been driven “into recession”—comments that may have prompted crypto traders to brace for short-term volatility ahead of this week’s key jobs report.

The combination of economic uncertainty and crypto-specific technical pressures created a perfect storm for digital assets. While traditional markets appeared to shrug off the concerns, cryptocurrency traders demonstrated heightened sensitivity to potential economic headwinds. This reaction pattern suggests crypto markets may be increasingly attuned to macroeconomic indicators, even as they diverge from traditional market movements in their response intensity.