Nothing wakes up traders like red across every chart. Today, the crypto market saw its total capitalization plunge 3.2% to $3.6 trillion. This is with an eye-watering $400 million in crypto liquidations in 24 hours. Bitcoin led the charge downwards, dipping below $107,500 and forcing out over 162,000 long traders, while Ethereum posted almost as heavy losses. Savvy traders turned to stablecoins and Bitcoin for safety.
Wondering what caused the crypto market to go down? As always in crypto, there’s never just one reason.
Large holders didn’t hesitate. One whale alone moved 13,000 BTC worth $1.48 billion onto exchanges. Then, futures open interest on Ethereum sank by 5.2%. It became a classic liquidation spiral, where falling prices triggered stop losses and even more selling.
Successively, the market cap broke critical support at $3.74 trillion and the 30-day simple moving average. This is while the RSI at 40.88 still left room for more selling, barely above truly oversold.
Altcoins fared the worst, which is evident in the crypto liquidations heatmap by CoinGlass. The entire top 50 fell 4% in a day, Bitcoin’s dominance spiked to 60%, and popular tokens like Uniswap and DOGE plunged even further. Ethereum liquidations totaled $112.8 million, just outpacing Bitcoin’s $96.9 million. Solana, ASTER, and DOGE joined the rout, while fear took over social media timelines.
Just days after the Federal Reserve’s October rate hike, Powell walked back hopes for another December cut. That spurred the dollar higher, hitting crypto hard. Markets value lower rates and easier money, so any hint of tighter policy scares off risk-takers fast. Treasury Secretary Scott Bessent also signaled limited room for more easing. The odds of another cut dropped to 69%, and the dominoes fell fast in crypto trading rooms.
Meanwhile, U.S. Bitcoin spot ETFs saw $1.15 billion yanked out last week, especially from industry leaders like BlackRock, ARK Invest, and Fidelity. That kind of pullback signals big investors stepping aside, and warns retail traders about potential further downside. When BTC lost support under $110,000, it was clear the pros were bracing for the worst.
“Over $231.7 million in long positions has vanished in 4 hours. Even with US stock futures opening strong, crypto is just free-falling.”
It was the perfect storm: Fed policy signals, huge ETF withdrawals, and whale moves sparked cascading liquidations as buyers vanished and prices plummeted.
Ethereum and Bitcoin topped the liquidation charts, but Uniswap and DOGE lost the most in percentage terms, showing traders avoided riskier altcoin bets.
If Bitcoin breaks below $106,000, analysts say the market could face another $6 billion in forced liquidations. Until then, fear rules the sentiment.
CoinPedia has been delivering accurate and timely cryptocurrency and blockchain updates since 2017. All content is created by our expert panel of analysts and journalists, following strict Editorial Guidelines based on E-E-A-T (Experience, Expertise, Authoritativeness, Trustworthiness). Every article is fact-checked against reputable sources to ensure accuracy, transparency, and reliability. Our review policy guarantees unbiased evaluations when recommending exchanges, platforms, or tools. We strive to provide timely updates about everything crypto & blockchain, right from startups to industry majors.
All opinions and insights shared represent the author's own views on current market conditions. Please do your own research before making investment decisions. Neither the writer nor the publication assumes responsibility for your financial choices.
Sponsored content and affiliate links may appear on our site. Advertisements are marked clearly, and our editorial content remains entirely independent from our ad partners.
The crypto market saw a sharp sell-off today, with Bitcoin, Ethereum and XRP all moving…
Most crypto investors miss the best opportunities for two simple reasons. They enter too early,…
XRP is trading near the $2 level, but something bigger than daily price movement is…
Bitcoin is approaching an important price area, where the next move could set the tone…
Ethereum’s biggest risk may no longer be competition, regulation, or scaling. According to Vitalik Buterin,…
XRP has started 2026 with strong price gains, rising more than 20% so far this…
