The cryptocurrency market has experienced nearly $470 million in liquidations as Bitcoin and other leading altcoins have lost momentum ahead of Monday's market opening in the U.S. The overall market capitalization has seen a 3.23% decrease, losing more than $100 billion in a swift downtrend.
According to data, Bitcoin price fell 3% from its daily high of $110,764 to $107,000 at the time of publishing. This pullback led to massive volatility in the altcoins market, with Ether (ETH) dropping nearly 5.8% to $3,680, XRP dropping 5% to $2.38, BNB seeing a 5.70% drop to $1,029, and Solana (SOL) losing the most among all—6.5% to $174 as of 6:50 AM UTC.
The drop in prices comes as the crypto industry navigates through various key events, including the impacts of recent rate cuts by the Fed, questionable Bitcoin whale movements, and the controversy around MEXC. Several traders accused the exchange of freezing funds and hinted at the likely insolvency of the platform. However, MEXC affirmed its stance and shared a latest proof-of-reserve (PoR) on Sunday, confirming sufficient assets backing.
24-Hour Liquidation Reaches $470 Million
Data indicates that the 24-hour liquidation in crypto markets wiped out over $470 million, with ETH alone contributing nearly $112 million, followed by BTC, SOL, ASTER, and DOGE. Binance is in the leading position for liquidating traders among all other exchanges, accounting for $140 million from all long/short positions combined, while Bybit closely followed with $110 million.
Hyperliquid is among the top platforms in market liquidations, contributing $101 million to the total. This reflects the perpetual decentralized exchange's increasing popularity among a growing user base, echoing shrinking trust in centralized exchanges.
Volatility Ahead of Monday Market Opening
The weekly market opening on Monday in the U.S. typically brings volatility into cryptocurrencies, which most of the time witnesses a downtrend. While most of the narratives have cooled down and investors are not anticipating any key events this week, the sell-off is likely due to short-term traders rethinking their strategies and exiting the market.
The diminishing open interest (OI) in Bitcoin futures, as per data, shows that traders are cutting their risks to the market and are preparing to reposition themselves as new narratives emerge.
Adding to the situation is an upcoming Fed speech on Tuesday, November 4, where Governor Lisa D. Cook will be speaking on the “The Outlook for the Economy and Monetary Policy” session. Moreover, the Federal Open Market Committee (FOMC), scheduled to meet on November 6–7, would also be influential for crypto markets, stocks, as well as the global economy.
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