Crypto Market Plunges: Bitcoin Breaches $105K, Unleashing $1.37 Billion Liquidation Wave

The cryptocurrency market commenced November on a turbulent note, extending its recent period of weakness. Amidst last week’s ETF withdrawals, significant profit-taking by major “whale” investors, and persistently subdued investor sentiment, Bitcoin today (the 4th) dramatically breached the crucial $105,000 threshold. This sharp decline ignited the most severe wave of leveraged liquidations seen in weeks across the digital asset landscape.

According to CoinGecko market data, Bitcoin experienced a steep descent during the Asian midday trading session. Starting from $107,000, the leading cryptocurrency plunged to an intraday low of $104,257, hovering around $104,700 at the time of this report.

The broader crypto market was not spared from the intensified selling pressure. Ethereum (ETH) saw a 5.2% decline, settling at $3,528. Ripple (XRP) dropped 5.3% to $2.29, while BNB fell 7.5% to $959.33. Solana (SOL) endured an even steeper correction, plummeting over 9% to $159.99. Collectively, the total cryptocurrency market capitalization shed over 3% within the last 24 hours, shrinking to $3.5 trillion.

As major cryptocurrencies capitulated, the derivatives market witnessed a brutal reckoning. The total value of liquidated contracts across the network surpassed an staggering $1.37 billion, marking the most intense liquidation event in recent weeks.

A Brutal Reckoning: $1.22 Billion in Leveraged Long Positions Wiped Out

Analysis from CoinGlass reveals that approximately 90% of these liquidations originated from long positions. A staggering $1.22 billion worth of leveraged long orders were forcibly closed, contrasting sharply with only about $144 million in short position liquidations.

The single largest liquidation event occurred on HTX, involving a BTC/USDT long position valued at an immense $47.87 million that was involuntarily closed. In terms of overall volume, Hyperliquid exchange bore the brunt, accounting for $399 million in liquidations, with nearly 98% of these being long positions. It was followed by Bybit ($333 million) and Binance ($247 million).

For clarity, a “liquidation” occurs when a trader utilizing leverage faces significant asset price volatility, leading to insufficient margin to maintain their position. To prevent further losses, exchanges automatically force-close these positions. While designed as a risk management tool, in highly volatile markets, such automatic liquidations often trigger a cascading “domino effect,” further exacerbating selling pressure and market downturns.

Timothy Misir, Head of Research at BRN, offered a nuanced perspective: “This downturn isn’t a structural catastrophe, but rather a natural correction and period of profit-taking following two consecutive months of overheated gains. However, it starkly highlights the extent to which recent upward momentum has relied on consistent spot buying inflows from ETFs, corporate entities, and other significant players.”

Misir further elaborated that Bitcoin whales currently command approximately 68.6% of the circulating supply. While they net-accumulated roughly 110,000 Bitcoins in October, they also strategically offloaded 23,000 Bitcoins at higher price points. He concluded:

“The market is currently in a digestion phase; while the underlying bullish structure persists, investor confidence has visibly cooled. For Bitcoin to achieve another significant upward breakthrough, it will necessitate fresh spot buying — whether from the burgeoning ETF sector or renewed corporate interest.”

ETF Outflows and Cooling On-Chain Metrics Signal Shifting Tides

The sentiment of market weakness is further corroborated by recent fund flow data. BRN’s research indicates that Bitcoin spot ETFs experienced a net outflow of $799 million last week, while Ethereum ETF inflows remained largely flat, reflecting a cautious stance among institutional investors.

Analysts suggest that capital momentum is temporarily diverting from Bitcoin towards “high Beta” narratives, exemplified by the recent surge in Solana (SOL). The newly launched Solana ETF successfully attracted an impressive $200 million in capital inflows during its inaugural week of trading, showcasing a distinct shift in investor focus.

Concurrently, on-chain data presents clear signs of market cooling: realized profit margins are contracting, funding rates are stabilizing, and options skew has gently turned bearish. Furthermore, Bitcoin options open interest has receded from its October peak of $56 billion to $43 billion, indicating a noticeable reduction in leveraged confidence.

November Outlook: Can Historical Bullishness Prevail?

Last week saw a stable recovery across global risk assets following a consensus reached in US-China trade negotiations, easing tariff tensions. Timothy Misir posits that while macroeconomic factors currently act as “background noise,” they will ultimately dictate broader market sentiment.

He advises investors to adopt “defensive positioning” and “staged entry” strategies. Misir added that if Bitcoin can decisively reclaim the $110,000 mark with robust trading volume, it could signal the onset of the next bullish turning point.

Looking ahead to November, Bitfinex offers an optimistic yet cautious forecast, viewing October’s volatile ride as a “market reset” rather than a destruction of the underlying bull market structure:

“We anticipate a cautious continuation of the Q4 rally, with Bitcoin likely trading within a range of $105,000 to $140,000.”

Bitfinex also highlighted positive indicators such as a decrease in implied volatility from 47% to 40% and a 5% weekly increase in CME Bitcoin futures open interest, suggesting a gradual stabilization and potential recovery in derivative positions.

Should further easing signals emerge from inflation data and Federal Reserve (Fed) policy, the market retains significant upside potential. Conversely, renewed trade friction or a tightening of global liquidity could pose substantial downside risks.

Historically, November has been a remarkably strong month for Bitcoin, boasting an average gain of 46% over the past 13 years, compared to October’s average of 20%. However, this October’s closing rally was notably subdued, indicating that the market is currently in a “pause and repricing” phase, characterized by a wait-and-see attitude.