Bitcoin plunged to $88,000 yesterday after the probability of a December Fed rate cut fell sharply. A post-market surge in stocks following Nvidia’s strong Q3 earnings helped Bitcoin recover above $90,000. Massive $605M liquidation event rattled leveraged traders, with long positions hit hardest.
The sudden macro shift sent risk-on assets into a waterfall sell-off, wiping out leveraged positions across crypto. By the time U.S. markets closed, however, the picture changed dramatically. A strong earnings beat from Nvidia in its Q3 report triggered a recovery across equities — and Bitcoin rode that wave. BTC clawed back over the $90,000 threshold within hours, signaling that risk appetite isn’t fully dead despite mounting economic fears. Nvidia continues to function as the risk benchmark for global markets, and its bullish results offered a temporary relief valve for crypto.
Leverage Bloodbath: $605M Wiped Out in 24 Hours
Derivatives traders paid the price for extreme positioning. More than $605 million in liquidations hit the market in a single day, including $427.75 million from long positions and $177.33 million from shorts.
Bitcoin alone accounted for $157.26 million, highlighting how leveraged speculation has intensified even while spot demand has softened.
Whale activity on the Bitcoin $BTC network keeps dropping, from more than 2,400 transactions per day in October to just 300 today.
On-chain flows mirror the turbulence — large BTC transactions that exceeded 2,400 per day in October have collapsed to around 300, illustrating a significant cooldown in whale participation.
Sentiment Sinks as Social Interest in Crypto Evaporates
Another factor weighing on the market is psychological rather than technical. Social engagement metrics across YouTube and X (Twitter) are plumbing multi-year lows, according to recent analytics dashboards.
NO SOCIAL INTEREST IN CRYPTO!
Historically, extreme disinterest has coincided with early stages of market bottoms rather than euphoric peaks — but it also signals the absence of new liquidity entering the ecosystem.
Rate Cuts Now Dominate the Next Market Trigger
With inflation still above the Fed’s comfort zone, traders are now pricing a much lower probability of a December rate cut. That shift was the direct catalyst for yesterday’s decline, but analysts stress that the setback doesn’t automatically equal a structural trend change.
Michaël van de Poppe, reviewing Bitcoin dominance charts, stated that continued strength in dominance over the coming weeks is crucial to prevent the market from flipping into a bear cycle.
Pretty good breakdown of the $BTC dominance. I really want to see continuation of this in the coming weeks, as that wouldn't signal a bear market.
Technical Snapshot: Range Exhaustion Still Dominant
Bitcoin is trading near $91,700 at the time of writing. Key indicators show:
- •RSI (4h chart): 44.11, signaling neutral-to-oversold territory
- •MACD: still below the signal line, showing weak momentum
- •Support zone: ~$88,000 remains the line that bulls absolutely must protect
- •Overhead resistance: ~$95,000, followed by ~$100,000
If buyers fail to maintain $88,000 during the next volatility event, analysts warn that the market could begin pricing in a deeper downturn.