The post Crypto Sell Off Today: $470 Million Liquidated as Bitcoin, Ethereum & Solana Plunge appeared first on Coinpedia Fintech News
The crypto market kicked off the week in the deep red, with over $470 million in trader liquidations in just 24 hours. Major coins like Bitcoin, Ethereum, and Solana dropped sharply as investors turned cautious ahead of key U.S. economic data and growing recession fears.
Bitcoin and Ethereum Lead the Decline
Bitcoin dropped 2.43% to $107,785, extending its three-week battle to break above the key $113,000 resistance. Ethereum also fell 4.25% to $3,732, as enthusiasm surrounding ETH exchange-traded funds (ETFs) cooled off. The pain spread across the altcoin market, with Solana (SOL) down 6.5% to $174, BNB falling 5.7% to $1,029, and XRP losing 5% to $2.38.
This broad decline erased over $100 billion from the total crypto market capitalization, marking a 3.2% daily drop.
What Triggered the Sell-Off?
Traders got panicked after U.S. Treasury Secretary Scott Bessent warned that high Federal Reserve interest rates might already be pushing parts of the economy, especially housing, into recession territory. His comments fueled worries that tighter monetary conditions could weaken demand for riskier assets like crypto.
Adding to the anxiety, the MEXC exchange controversy stirred fear among traders. Several users accused the platform of freezing withdrawals, sparking insolvency rumors. Although MEXC later released a proof-of-reserves (PoR) report confirming sufficient asset backing, the scare reignited concerns about trust in centralized exchanges.
The downturn also comes ahead of Friday’s U.S. jobs report, which could significantly influence expectations around Fed rate cuts and, consequently, crypto sentiment.
Bitcoin ETFs Face Major Outflows
Investor caution is also visible in traditional markets. U.S. spot Bitcoin ETFs saw a massive $1.15 billion in outflows last week, according to Fairside. The biggest withdrawals came from BlackRock, ARK Invest, and Fidelity, suggesting that even institutional players are reducing exposure to Bitcoin-linked products amid market uncertainty.
Also Read : Why Is the Crypto Market Down Today, On Nov 3? ,
Massive Liquidations and What Lies Ahead
Data from CoinGlass revealed that nearly $470 million in crypto positions were liquidated in one day, led by Ethereum ($112M), followed by Bitcoin and Solana. Centralized exchanges like Binance and Bybit accounted for most of these losses, while decentralized platform Hyperliquid saw $100M in liquidations, reflecting a growing trader shift toward DeFi platforms.
In response to the crisis, crypto analyst Lark Davis said that the crypto market is facing nonstop selling and fear, with many traders losing hope. However, he believes the bigger economic picture still supports future gains. Once the U.S. government reopens and money starts flowing back into the system, the market could recover, but until then, the pain will continue.
With more key economic speeches and the FOMC meeting scheduled next week, analysts warn of continued volatility. For now, traders are de-risking, watching from the sidelines, and bracing for the next move in this ongoing crypto storm.
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FAQs
The crypto market is falling due to recession fears, high U.S. interest rates, and major outflows from Bitcoin ETFs, causing traders to sell and de-risk.
Over $100 billion in value was wiped out in 24 hours as Bitcoin, Ethereum, and Solana led a broad market decline driven by investor caution.
Nearly $470 million in positions were liquidated as traders faced margin calls after sharp price drops across Bitcoin, Ethereum, and Solana.
Volatility may continue ahead of U.S. jobs data and Fed meetings. Analysts expect more caution until signs of lower rates or stronger liquidity emerge.