Bitcoin News Today: As $1.2B in Liquidations Hit Crypto Market, Traders Double Down on Long Bets

The cryptocurrency market experienced a volatile 24-hour period, with over $1.2 billion in liquidations reported as Bitcoin (BTC) and Ethereum (ETH) plummeted. According to Coinglass data reported by FXStreet, long positions bore the brunt of the losses, with $1.1 billion in long liquidations compared to just $115.5 million in short liquidations. The selloff was triggered by sharp price declines: Bitcoin fell from $108,000 to $105,000, while Ethereum dropped from $3,700 to $3,500 within an hour, the FXStreet piece said. The largest single liquidation, valued at $33.9 million, occurred on HTX, the FXStreet coverage added.

The downturn caught several high-profile traders off guard. Smart money tracker Lookonchain noted that trader 0xc2a3, previously a 100% win rate operator, suffered losses in BTC, ETH, and Solana (SOL) positions, flipping their net profit/loss on Hyperliquid from +$33 million to –$17.6 million, according to FXStreet. Meanwhile, Machi Big Brother was fully liquidated, losing over $15 million, FXStreet reported. Despite the carnage, some investors took aggressive long positions post-dip. A key Bitcoin OG, known for navigating the October 10 crash, opened $37 million in BTC and $18 million in ETH longs on Hyperliquid, the FXStreet article noted.

The market's decline was exacerbated by macroeconomic factors. The Coinbase Bitcoin Premium Index, a gauge of arbitrage opportunities, hovered around -$30 during the plunge, indicating heavy selling pressure from U.S. investors, the FXStreet report said. Analysts also pointed to the Federal Reserve's cautious stance, with Chair Jerome Powell tempering expectations for a December rate cut, according to an Incrypted report.

Ethereum faced its own turmoil, with $112.8 million in liquidations reported amid a broader market selloff, according to a TradingView report. The altcoin's decline outpaced Bitcoin's, with analysts warning of potential further losses to $2,750, the TradingView piece added. Solana (SOL) and other major tokens also suffered, with SOL dropping 10% and BNB losing 8%, FXStreet reported.

The market's fragility was further exposed by a $70.9 million exploit on the Balancer DeFi protocol, which drained funds to a new wallet, according to FXStreet coverage. This event, coupled with thin order books and cascading liquidations, amplified volatility. Validators on platforms like Berachain and Sonic took emergency measures, raising questions about blockchain decentralization, the FXStreet article noted.

The liquidation wave follows a pattern of extreme swings. On October 10, the market recorded nearly $20 billion in liquidations, and October 30 saw over $1 billion in forced closures, FXStreet noted. Bitcoin's current price of $107,000 reflects a 2.7% drop over 24 hours, while the Fear and Greed Index sank to 34, signaling widespread fear, the Incrypted piece added.

Despite the turmoil, some optimism persists. Bernstein analysts highlighted Bitcoin miners' potential to benefit from AI-driven data center demand, with price targets rising, the Incrypted article said. Meanwhile, BitMine's $300 million Ethereum acquisition underscores institutional confidence in the asset class, TradingView noted.