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More than $1.3 billion in leveraged cryptocurrency positions were liquidated within 24 hours on Monday as Bitcoin tumbled from $110,000 to below $105,000, marking one of the largest forced liquidation events in recent months, according to data from CoinGlass.
The cascade wiped out over 300,000 traders, with nearly 90% of liquidated positions being long bets — a sign of how aggressively bullish sentiment had become before the reversal.
Bitcoin accounted for $397 million in forced closures, while Ethereum saw $368 million in liquidations as the sell-off dragged the broader market lower.
At press time, Bitcoin remained under pressure, trading near $104,500 and retaining a market capitalization of about $2.13 trillion.
The sudden downturn dragged the broader market lower, shrinking total crypto capitalization by 2.5% to $3.59 trillion — its lowest point since July 11 — and deepening the ongoing crypto market liquidation trend.
The sell-off coincided with a sharp shift in sentiment as the Crypto Fear & Greed Index dropped into “Extreme Fear” territory at 21. The dominance of losing long positions highlights how confidence in recent market momentum left a majority of traders exposed to the aggressive crypto market liquidation cascade.
Solana was among the hardest hit, falling more than 9% to $159.82, while Ethereum slid 5.2% to $3,528. XRP dropped to $2.29, compounding losses across major assets. Analysts say thin liquidity during off-peak hours accelerated the crypto market liquidation process as automated margin calls triggered additional selling.
The downturn also interrupted the lingering optimism from Bitcoin’s attempt to break above $111,000 — a key resistance level — late last week. Instead, traders who pushed prices higher were met with aggressive forced unwinding, deepening the crypto market liquidation cycle.
Market strategists pointed to macroeconomic forces behind the sell-off. A strengthening U.S. dollar and reduced expectations for imminent Federal Reserve rate cuts added pressure to risk-on assets, including cryptocurrencies. After recent statements from Fed officials signaled caution toward rapid monetary easing, investor assumptions began to shift — adding urgency to the crypto market liquidation already underway.
The broader pullback also marked the end of Bitcoin’s once-celebrated “Uptober” narrative. October closed with a 3.7% monthly loss — the asset’s worst performance for the period since 2018. Still, some experts believe this crypto market liquidation could ultimately prove constructive.
“Bitcoin’s first red October in seven years has certainly caught attention, but I see it more as a healthy reset than a structural reversal,” said Rachel Lin, CEO of SynFutures, speaking to crypto.news. “After a strong run through most of 2025, markets needed to digest gains, and we’re now seeing that play out.”
Traders are now bracing for a pivotal week of U.S. economic data, including job openings, payroll updates, and inflation expectations — all of which could influence future Fed decisions and determine whether crypto market liquidation pressure persists.
“For November, I expect a period of stabilization and cautious optimism,” Lin added. “Bitcoin may trade sideways early in the month as markets absorb Fed commentary, but a decisive shift in tone — either from softer inflation prints or a clearer easing message — could trigger a recovery.”
She noted that Ethereum may closely track Bitcoin’s trajectory but could benefit from increased institutional interest and upcoming network upgrades, helping offset the ongoing risks associated with crypto market liquidation patterns.
For now, markets are grappling with the aftermath of a high-stakes leverage unwind, while investors wait for clearer signals on where global monetary policy — and crypto valuations — are headed next. The enduring question: whether the current crypto market liquidation marks a temporary shake-out or the start of deeper corrections.
