$2 Billion Wiped Out in Crypto Liquidations as Bitcoin Dips Below $100K — Volatility Returns

Getting your Trinity Audio player ready...

• Over $2.09 billion in leveraged crypto positions were wiped out in one day.
  
• Bitcoin fell below $100K and Ethereum dropped nearly 10%.
  
• Macroeconomic uncertainty and over-leverage drove the sell-off.

A wave of forced selling swept across the crypto market on Tuesday, erasing more than $2 billion in leveraged positions within a single day. Bitcoin briefly dipped below the key $100,000 mark before rebounding slightly, as traders scrambled to exit positions amid one of the sharpest sell-offs in months.

Bitcoin and Ethereum Lead the Drop

Bitcoin fell as low as $99,008, down 4.6% in 24 hours, while Ethereum plunged nearly 10% to $3,098, according to CoinMarketCap. Major altcoins—including Solana, XRP, and BNB—also tumbled more than 5%. The total crypto market capitalization slipped to $3.39 trillion, while trading volume surged 55% to $314.76 billion as traders rushed to close positions.

Data from CoinGlass showed that long traders bore the brunt of the damage, losing $1.68 billion out of the total $2.09 billion liquidated. The largest single liquidation occurred on HTX with a $47.87 million BTC-USDT trade. Bybit led all exchanges, accounting for 34% of total losses, followed by Hyperliquid and Binance.

Macroeconomic Tensions Fuel Panic

Analysts linked the sell-off to renewed macroeconomic uncertainty. The Federal Reserve’s latest comments dampened hopes of another interest rate cut in December, triggering a broader risk-off sentiment. Stocks also fell, with the Nasdaq and S&P 500 closing lower, echoing crypto’s volatility.

Wintermute, a leading market maker, described the event as a “classic travel and arrive” scenario—investors had priced in good news ahead of the Fed meeting and then quickly pulled back once expectations shifted.

Also Read: Solana ETFs Extend 6-Day Winning Streak as Bitcoin and Ether Funds Bleed $800M

Outlook: More Turbulence Ahead

BitMEX co-founder Arthur Hayes warned that traders should brace for more choppy markets until liquidity conditions improve. “Between now and when stealth QE begins, one has to husband capital,” he noted, citing ongoing liquidity drains and potential U.S. government budget uncertainty.

The $2 billion liquidation wave underscores how quickly leverage can magnify risk in crypto. With volatility showing no signs of easing, traders may need to reduce exposure and prepare for more unstable sessions ahead.

Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.