Bitcoin News Today: Crypto's $1.73B Liquidation Frenzy: Correction or Onset of Bear Market?

A record wave of crypto liquidations surged to $1.73 billion in 24 hours as Bitcoin and Ethereum plunged, triggering panic among traders and prompting significant shifts in market dynamics. The selloff, fueled by macroeconomic anxieties and leveraged positions, saw over 438,000 traders liquidated, with long positions accounting for $1.32 billion of the losses, according to a Yahoo Finance report. The CNN Fear & Greed Index hit 21, its lowest since March, signaling extreme risk aversion.

Amid the chaos, a trader identified by wallet address 0x9263... flipped its strategy entirely. After closing four short positions for $4.74 million in profit, the trader opened $64.7 million in leveraged long positions on Hyperliquid, betting on a rebound in Bitcoin, Ethereum, Solana, and Uniswap. This move contrasted with broader market conditions, where Ethereum's 4.5% drop in 24 hours led to $573.91 million in liquidations, while Bitcoin's slide below $100,000—a first since mid-May—triggered $499.89 million in losses, according to a Yahoo Finance analysis.

The liquidation frenzy accelerated as major crypto stocks and ETFs faced pressure. Binance, the largest exchange by volume, recorded a net inflow of 8,403 BTC ($855 million), suggesting investors were preparing to offload assets amid volatility. Meanwhile, U.S. spot Bitcoin ETFs saw their fourth consecutive day of outflows, totaling $187 million on Nov. 3, according to a Yahoo Finance article. Cathie Wood, CEO of ARK Invest, revised her Bitcoin bull-case target to $1.2 million by 2030, citing the growing dominance of stablecoins, as noted in a Yahoo Finance report.

Bitcoin's decline intensified on Nov. 4 as Sequans Communications, a publicly listed semiconductor firm, sold 970 BTC ($94.5 million) to reduce debt. The move added to selling pressure, pushing BTC below $100,000 for the first time in three months. Technical indicators, including the MACD and Keltner Channel, signaled bearish momentum, with support levels testing near $103,321.

Despite the turmoil, signs of resilience emerged. Binance's stablecoin inflows and increased social sentiment—highlighted by Santiment—suggested a potential buying spree. Ethereum, which briefly reclaimed $3,330 after hitting $3,000, saw $219 million in ETF outflows but maintained structural support near its 2022 bear-market lows, as detailed in the ETH Rebounds After $3K Visit piece.

The market's volatility also exposed vulnerabilities in leveraged trading. A $26.06 million ETH position on Hyperliquid was liquidated, while controversial trader James Wynn saw his net profit flip from $33 million to -$17.6 million, as reported in an FXStreet report. Meanwhile, DeFi platforms reported declining TVL, with protocols like Raydium and Jupiter Exchange enduring a 6.3% drop in total value locked, according to a Cointelegraph piece.

As the sector grapples with uncertainty, the winding down of Lantern Ventures-a London-based trading firm founded by former Alameda Research members-added to the narrative. Managing $600 million at its peak, the firm is returning capital to investors and exploring a relaunch as a family office, according to a CoinDesk report.

With Bitcoin hovering near $102,000 and Ethereum stabilizing above $3,200, the market remains in a precarious equilibrium. Traders and analysts await clarity on whether this is a short-term correction or the onset of a broader bear market.

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