Bitcoin (BTC) Price: Falls Below $105,000 as $1.3 Billion Liquidation Wave Hits Crypto Markets

TLDR

• Bitcoin fell 2.4% to $104,956 after dropping below $105,000 on Tuesday morning
• Over $1.27 billion in leveraged crypto positions were liquidated in 24 hours, the largest wave in weeks
• Fed officials sent mixed signals on future rate cuts, with some saying inflation isn’t falling fast enough
• The Crypto Fear & Greed Index dropped to 21 out of 100, its lowest level in nearly seven months
• Major altcoins also declined, with Solana down 10%, Ethereum down 6%, and XRP down 5.5%

Bitcoin extended its losses on Tuesday, falling below $105,000 as crypto markets experienced one of their largest liquidation waves in recent weeks. The world’s largest cryptocurrency traded 2.4% lower at $104,956.8 by 01:02 ET.

The decline came after Bitcoin dropped nearly 4% in the previous session. This brought the cryptocurrency to its lowest level since mid-October.

Data from CoinGlass revealed that more than $1.27 billion in leveraged futures positions were wiped out across the crypto market in the past 24 hours. This marked the biggest liquidation event in weeks.

Most of the losses came from long positions. Traders who bet on further price gains were forced to close their positions as Bitcoin’s price suddenly dropped.

The sharp decline occurred as risk appetite weakened across global markets. Investors processed mixed signals from Federal Reserve officials regarding future monetary policy.

These conflicting messages increased uncertainty about whether the Fed would cut rates again in December. This prompted traders to reduce their risk exposure.

A stronger U.S. dollar and rising Treasury yields put additional pressure on Bitcoin and other cryptocurrencies.

Market Sentiment Reaches Extreme Fear

Bitcoin’s fall below $106,000 pushed crypto market sentiment into “Extreme Fear” territory. The Fear & Greed Index dropped to 21 out of 100 on Tuesday, down from 42 the previous day.

This represented the index’s lowest reading in nearly seven months. The last time it reached this level was on April 9, when it hit 18 out of 100.

The index previously showed “Extreme Fear” on October 22, when it scored 25 out of 100. At that time, Bitcoin slid from over $110,000 to below $108,000.

Bitcoin fell to a 24-hour low of $105,540 on Monday. It had previously reached an intraday peak of over $109,000 before the decline.

Fed Policy Concerns Drive Selloff

The Federal Reserve cut interest rates for the second time this year last Wednesday. However, officials signaled they might not reduce rates again in 2025.

This announcement caused crypto markets to drop. Investors had hoped for additional rate cuts throughout the year.

Last week, Bitcoin exchange-traded funds saw net outflows of nearly $800 million. Institutional buying fell below the daily mined supply for the first time in seven months.

Analysts attributed Bitcoin’s current decline to reduced institutional demand and lower blockchain activity. Concerns about an increasingly hawkish Federal Reserve also played a role.

Altcoins Face Steep Declines

Most altcoins experienced similar losses to Bitcoin on Tuesday. Ethereum, the world’s second-largest cryptocurrency, dropped 6% to $3,497.92.

XRP, ranked as the third-largest crypto, fell 5.5% to $2.28. Solana faced the steepest decline among major cryptocurrencies, plunging 10.1%.

Cardano declined 5.5%, while Polygon lost 7.6%. Meme tokens also saw losses, with Dogecoin dropping 5% and $TRUMP retreating 8.3%.

The decline extended Bitcoin’s volatile start to November. Bitcoin posted its first October loss since 2018 during the historically strong month.

Bitcoin has historically gained an average of over 42% in November. The month typically ranks as its best period for growth, though this pattern has not held in recent years.

Cipher Mining shares climbed over 20% on Monday after announcing a $5.5 billion, 15-year lease with Amazon Web Services. The deal will supply 300 megawatts of capacity for AI infrastructure beginning in 2026.

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