Crypto Carnage: Bitcoin Plunge Below $104K Triggers Massive Liquidations

Digital asset markets reel as Bitcoin's dramatic collapse sends shockwaves through the ecosystem

The Domino Effect

Leveraged positions vaporized in minutes as BTC's sudden descent below the critical $104,000 level triggered cascading liquidations across major exchanges. Margin calls hit record volumes while traders scrambled to cover positions.

Market Mechanics Exposed

High-frequency liquidation engines fired simultaneously, creating a feedback loop that accelerated the sell-off. Perpetual swap funding rates flipped negative as panic spread through derivatives markets.

Silver Linings in the Storm

Veteran hodlers viewed the dip as accumulation opportunity while weak hands got shaken out. Blockchain analytics showed substantial whale accumulation at key support levels despite the bloodbath.

Another day, another reminder that crypto markets move faster than traditional finance can even process—maybe that's why Wall Street still doesn't get it.

The crypto market faced intense pressure on Tuesday as Bitcoin tumbled below $104,000, triggering one of the largest liquidation events of the year. More than $1.3 billion in leveraged positions were liquidated within 24 hours, reflecting rising fear among traders as Bitcoin’s correction deepens.

Crypto liquidations Bitcoin Slides 17% From Its Peak

Bitcoin’s drop marks a 17% decline from its all-time high of $126,000, recorded on October 6. The latest fall to around $104,130 came after a failed attempt to hold above $111,000 over the weekend. Traders shifted to a “risk-off” mode, rapidly unwinding Leveraged bets as volatility spiked across the market.

Data from CoinGlass revealed that $1.21 billion worth of long positions were liquidated, with Bitcoin alone accounting for $377 million and ethereum following with $316 million. The single largest liquidation happened on HTX, where a massive $47.8 million BTC-USDT long was closed in one sweep. In total, the market saw $1.36 billion in both long and short liquidations combined. 

ETFs making things Worse…

For the fourth straight day, spot Bitcoin ETFs recorded net outflows, removing $187 million from the market on Nov. 3. Ethereum ETFs also saw $136 million in outflows. Interestingly, Solana ETFs recorded $70 million in inflows, signaling that some traders are rotating toward higher-risk assets despite the overall market downturn.

Market Sentiment Weakens as Futures Interest Falls

The sell-off was accompanied by a sharp decline in Bitcoin’s futures open interest (OI), a key indicator of trader participation. CoinGlass data showed that overall OI dropped 4%, with the CME Bitcoin futures market recording a steeper 9% fall in the last 24 hours.

A fall in open interest often signals reduced leverage and waning confidence. Historically, similar drops in OI have aligned with price dips. For instance, between September 19 and 28, a 10% OI decline came alongside an 8% fall in Bitcoin’s price, suggesting a familiar pattern of weakening momentum now.

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Traders Eye $100K as the Last Major Support

The Crypto Fear & Greed Index dropped to 21, indicating deep caution. BTC dipped under $105,000, and traders are now closely watching the $100,000 level, viewed as Bitcoin’s next strong line of defense. Popular trader Jelle noted on X that Bitcoin must quickly reclaim the $105,000–$107,000 range to avoid a deeper correction. “The next area of support is $100K,” he said.

Another trader, AlphaBTC, warned that a daily close below $105,300 could accelerate losses and trigger a slide under $100,000. Analysts expect bulls to defend the six-figure level strongly, but a break below it could flip Bitcoin’s long-term trend into bearish territory. On the same note, Bitfinex analysts caution that unless ETF inflows return or new institutional demand appears, bitcoin could “potentially extend toward the $100,000 region or lower.”

For now, the crypto market remains tense, with traders bracing for what could be a crucial test of Bitcoin’s resilience at $100,000.

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