Bitcoin News Today: High Leverage and Fed Uncertainty Fuel $1.2B Crypto Collapse

The cryptocurrency market experienced a dramatic sell-off on November 3, 2025, with over $1.2 billion in trader liquidations reported within 24 hours, according to an FXStreet report. The collapse was driven by sharp declines in Bitcoin (BTC) and Ethereum (ETH), which fell by 5-10% in a single hour, triggering cascading losses across the sector. Long positions accounted for nearly 80% of the liquidations, with Bitcoin alone seeing $310 million in long liquidations.

The price drop began as BTC plummeted from $108,000 to $105,000 and ETH fell from $3,700 to $3,500 within an hour. This volatility triggered over $100 million in combined liquidations for both assets during the same period. The largest single liquidation, a $33.9 million position on HTX, underscored the severity of the market's collapse. Solana (SOL) and other altcoins also suffered, with SOL dropping 10% to $190 and XRP, BNB, and Ethereum all retreating by 6-8%, according to a Crypto.news report.

The selloff was fueled by a combination of factors. U.S. investors played a key role, as the Coinbase Bitcoin Premium Index hovered near -$30 during the plunge, reflecting heavy selling pressure. Meanwhile, uncertainty over the Federal Reserve's policy trajectory weighed on sentiment. Fed Chair Jerome Powell's recent remarks suggesting no "foregone conclusion" for a December rate cut prompted a dollar rally, further dampening crypto demand, as Coinpedia reported.

High leverage among traders also exacerbated the downturn. Coinglass data showed that long positions dominated liquidations, with 162,000 traders wiped out in a single day. Prominent traders like 0xc2a3 and Machi Big Brother faced significant losses, with 0xc2a3's net profit flipping to a $17.6 million deficit. The market cap of the crypto sector fell 1.6% to $3.8 trillion as the selloff spread.

Despite the turmoil, some investors positioned for a rebound. A major Bitcoin "OG," known for navigating the October 10 crash, opened $37 million in BTC and $18 million in ETH long positions on Hyperliquid. However, analysts warn that further declines could trigger another wave of liquidations if BTC breaks below $106,000.

The recent volatility follows a pattern seen in October, when the market recorded nearly $20 billion in liquidations during a similar crash. While Bitcoin has since recovered slightly above $107,000, the broader market remains fragile, with traders bracing for more turbulence as macroeconomic uncertainty persists.

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