On November 4th, Bitcoin recorded a price drop reaching $104,000 levels amidst high market volatility and crypto liquidations. The general crypto market is down by almost 4% in the past 24 hours, with a total market cap of $3.46 trillion.
At the moment of writing this article, BTC is trading above $104,000, down by almost 3% in the past 24 hours.
Following a volatile week, BTC continued its descending trajectory, dropping from $107,000 levels to its current prices today.
BTC’s price decline is due to multiple factors, including crypto liquidations, continued BTC ETF outflows, and yesterday’s Balancer exploit, among others.
BTC ETFs Continue to Record Outflows
The US-based BTC ETFs continue their streak of outflows. On November 3, the crypto products saw over $186.5 million in outflows, all from BlackRock’s IBIT; the other BTC ETFs didn’t see any inflows or outflows the other day, SoSoVallue data shows.
This was the fourth consecutive outflow day for the crypto products since October 29, signaling a pause in institutional interest.
24-Hour Crypto Liquidations
Another factor that contributed to the general market volatility and BTC’s price decline is a high number of crypto liquidations.
CoinGlass data shows that over $1.34 billion in crypto liquidations were recorded in the past 24 hours, with more than $1.2 billion in longs and over $142 million in shorts.
BTC recorded the highest number of liquidations, over $389 million, mostly in long positions, followed by ETH with over $351 million in liquidations, mostly longs. Almost 336,000 traders were liquidated in the past 24 hours, with the largest single liquidation on HTX – BTC/USDT ($47.87 million).
Hyperliquid was the exchange with the highest liquidations in the past 24 hours, over $389 million, followed by Bybit and Binance, according to CoinGlass data.
Balancer Exploit
The crypto market’s volatility was accelerated on November 3 when Balancer suffered an exploit, which led to over $116 million in stolen funds. The platform’s exploit, despite being audited by multiple firms, led to a decline in trust in the industry.
The platform released an official statement about the exploit that affected its Composable Stable Pools, promising to deliver more findings soon. It’s also worth noting that assets on the BNB Chain haven’t been affected by the incident.
Following a failed Uptober, the ecosystem was expecting a rebound this month, due to multiple optimistic factors. We’ll see when the market recovers and resumes its upward trend. Meanwhile, these lower prices for BTC represent an accumulation opportunity.