The crypto market faced a sharp downturn on October 30, with total liquidations surging past $825 million in just 24 hours one of the largest single-day wipeouts in recent weeks. The majority of losses came from long positions, underscoring how over-leveraged bullish bets have been caught off guard by a sudden price reversal across Bitcoin and major altcoins.
Massive Long Liquidations Sweep the Market
According to data from Coinglass, total crypto liquidations reached $825.4 million, with long positions making up nearly 79% of the total. In contrast, short positions accounted for roughly $168.9 million.
Bitcoin led the charge in liquidations, with $310.3 million worth of long positions wiped out dwarfing the $59.2 million in Bitcoin short liquidations. Ethereum followed closely, facing over $2.4 million in losses during the most recent hourly updates.
In total, the crypto industry lost nearly $10 million in liquidations within just one hour, with Bitcoin and Ethereum dominating the liquidation heatmap. Meanwhile, Solana, XRP, and other altcoins also suffered sharp drawdowns as selling pressure intensified.
At press time, Solana recorded around $481,000 in liquidations, while smaller altcoins such as Pi Network and Aster were not spared, slipping 2.1% and 5%, respectively.
Market Cap Falls Below $4 Trillion
The broad sell-off dragged the overall crypto market capitalization down by 1.6%, dropping it to $3.8 trillion. Daily trading volume also surged to $192 billion, reflecting a spike in volatility and forced liquidations.
Bitcoin (BTC), the largest cryptocurrency by market cap, fell by 2.4% to around $110,000, erasing recent gains. Ethereum (ETH) followed with a 2.5% drop to $3,899, slipping below the crucial $4,000 level.
Despite the launch of new Solana ETFs, including Bitwise’s Solana Staking ETF and Grayscale’s Solana conversion, SOL failed to sustain momentum and dipped below $190. Similarly, XRP fell by 3.5%, trading near $2.56, while Dogecoin (DOGE) declined by 2.1% to $0.189.
Why Is the Crypto Market Crashing?
The latest downturn appears to be driven by a combination of macroeconomic factors, excessive leverage, and fading investor enthusiasm following the Federal Reserve’s 0.25% rate cut.
While the rate cut was widely anticipated, it sparked a classic “buy the rumor, sell the news” reaction. Traders who had positioned for bullish moves ahead of the Fed announcement began taking profits, leading to rapid sell-offs once the news was confirmed.
Meanwhile, the crypto market’s high leverage and thin liquidity magnified the impact of the pullback. As prices began to fall, cascading liquidations of over-leveraged long positions further accelerated the decline creating a feedback loop that intensified volatility.
Even the recent ETF launches, which were expected to boost market confidence, failed to stop the slide. Tokens tied to newly listed funds such as Solana, Litecoin, and Hedera (HBAR) instead saw declines, suggesting that speculative interest is cooling across the board.
Outlook: Leverage Unwinds as Traders Reset
The sharp correction serves as a reminder that market euphoria often precedes heavy liquidations in the crypto sector. Analysts suggest that the market may continue to experience turbulence as leveraged traders unwind positions and sentiment recalibrates following the Fed’s latest decision.
Still, with Bitcoin holding near $110,000 and market fundamentals such as ETF adoption improving, the current sell-off could represent a healthy reset in an otherwise extended bull cycle.
Summary:
- Total crypto liquidations reached $825 million in 24 hours, with 79% from long positions.
- Bitcoin led with $310.3 million in long liquidations, followed by Ethereum and Solana.
- The total crypto market cap dropped 1.6% to $3.8 trillion, as major altcoins turned red.
- The crash was triggered by post-Fed uncertainty, high leverage, and waning investor momentum despite new ETF launches.
