Crypto Bloodbath: BTC, ETH, XRP, SOL Plunge as Long Positions Get Massacred
Digital assets face brutal liquidation storm as leveraged bets unravel across major cryptocurrencies.
The Great Unwind
Heavy long liquidations trigger domino effect - Bitcoin leads the charge downward while Ethereum struggles to find footing. XRP and Solana join the carnage as over-leveraged traders face margin calls.
Liquidation Cascade
Forced selling amplifies the downturn, creating textbook liquidation spiral. Markets punish excessive optimism with typical Wall Street efficiency - turns out digital gold still bleeds red like everything else.
Technical Breakdown
Key support levels vaporize under selling pressure. The 'buy the dip' crowd suddenly remembers why risk management exists.
Silver lining? At least the traditional finance guys can't blame this one on 'irrational exuberance' - the numbers speak for themselves. Sometimes markets just need to remind everyone who's really in charge.
Fed comments weigh on crypto prices today
The latest decline followed the Federal Reserve’s 25-basis-point rate cut on Oct. 29. The rate cut had been widely anticipated, resulting in a “sell-the-news” MOVE which triggered forced liquidations across major exchanges.
While lower rates often boost risk assets, it was overshadowed by Chair Jerome Powell’s hawkish undertone, suggesting it could be the final cut of 2025. At the same time, heavy U.S. Treasury issuance has reduced market liquidity, pulling funds away from assets like crypto. Traders reacted with a “sell-the-news” move, triggering forced liquidations across major exchanges.
Funding rates have turned slightly negative, showing less appetite for Leveraged bets. Analysts describe the correction as a “liquidity purge” rather than a full-blown bear market, similar to prior mid-cycle shakeouts.
Broader market pressure continues
Ongoing concerns around trade tensions between the U.S. and China also added pressure. Even as new negotiations move forward, investors remain wary of President Trump’s previous tariff threats.
While some traders expect further downside, with Bitcoin potentially retesting $104,000, on-chain data shows stable accumulation by long-term holders. Analysts note that inflows to wallets continue to rise, suggesting underlying confidence.
In the past, risk asset recoveries have often been preceded by late-October pullbacks. Traders are keeping an eye out for a possible rotation back into cryptocurrency once liquidity conditions stabilise, as the Fed is expected to clarify its course in the upcoming weeks and trade negotiations continue.
