Crypto Bloodbath: Bitcoin Falls to $106,000 as Liquidations Top $990 Million

Bitcoin and major altcoins tumbled sharply, erasing nearly $170 billion in total market capitalization, even as the Federal Reserve took a more neutral policy stance and U.S.–China trade discussions in Seoul hinted at a breakthrough.

Instead of rallying on the prospect of lower interest rates and improved trade conditions, the market spiraled downward, with heavy liquidations and technical pressure overwhelming positive sentiment.

Fed’s Neutral Shift Fails to Reassure Markets

Federal Reserve Chair Jerome Powell confirmed that the central bank has moved closer to a neutral policy stance, acknowledging that downside risks to employment have risen while inflation remains “somewhat elevated” above the 2% target.

The Fed lowered rates by 0.25% in October but signaled that a December rate cut remains under consideration, emphasizing that the decision is “far from foregone.” Powell noted that recent government data delays caused by the shutdown complicated the Fed’s assessment, but reiterated that economic activity is expanding at a moderate pace and inflation—measured by PCE and core PCE—has stabilized near 2.8%.

Despite the cautious optimism, Powell’s balanced remarks sparked confusion among traders expecting a clearer signal for easing. The mixed tone—combined with uncertainty over the timing of a rate cut—triggered volatility across risk assets, with crypto taking the brunt of the move.

Trade Talks Between the U.S. and China Bring Optimism—but Not Relief

At the same time, U.S. and Chinese officials met in Seoul, South Korea, for a new round of trade negotiations, marking the first high-level engagement since Donald Trump’s renewed tariff measures earlier this month.

The talks were described by both sides as “constructive,” with discussions centered on tariff suspensions, semiconductor cooperation, and potential exemptions for critical exports such as rare earth materials. The White House said the dialogue in Seoul aimed to “restore predictability and fairness” in trade flows, while Chinese representatives called the meeting “a step toward a more balanced relationship.”

Ordinarily, such developments would boost market sentiment—particularly in digital assets, which often benefit from improved global liquidity prospects. Instead, crypto prices dropped across the board, baffling analysts.

Bitcoin Retreats Toward $106,000 Despite Whale Accumulation

Bitcoin (BTC) fell 3.8% in the past 24 hours to $106,876, extending its weekly losses to 3.3%. The decline came despite new data from Glassnode showing a surge in whale accumulation. Large wallets holding over 10 BTC have risen steadily since mid-October, suggesting institutional investors are quietly buying the dip.

Crypto Rover shared a Glassnode chart on X (formerly Twitter), noting that the number of accumulation addresses has climbed sharply while price action remains weak—a divergence that often precedes recovery.

Still, technical indicators remain cautious. Bitcoin’s RSI has dropped to 39, signaling growing bearish momentum, while MACD lines continue to hover below neutral levels. Analysts point to the $105,000–$106,000 zone as crucial short-term support, warning that a break below could trigger another liquidation wave.

Liquidations Top $990 Million in 24 Hours

According to Coinglass data, the past 24 hours saw over $994 million in leveraged positions wiped out, with $895 million in long positions liquidated. Bitcoin led the bloodbath with $394 million in forced liquidations, followed by Ethereum with $183 million.

This cascade of long unwinds created a self-reinforcing selloff, deepening the decline even as macro fundamentals turned seemingly positive. Analysts said traders were likely over-leveraged after positioning for a post-Fed rally, which never materialized.

Total crypto market capitalization now stands at $3.59 trillion, down 4.5% in a single session.

Ethereum, BNB, and XRP Join the Downturn

Ethereum fell 5.6% to $3,718, while BNB slipped 4.2% to $1,063. XRP managed to stay near $2.41 but faced strong volatility after an intraday spike was quickly reversed. Solana also fell sharply, with $73.8 million in liquidations, as risk appetite evaporated.

Despite the red wave, institutional sentiment remains mixed. Traders note that the underlying fundamentals – rising whale accumulation, steady on-chain activity, and improved macro outlook—are still supportive for long-term growth once the market stabilizes.

Why the Sell Off?

The paradox of falling prices amid dovish policy signals and easing trade tensions has left analysts searching for answers. One explanation is that markets had already priced in the positive catalysts, and traders chose to take profits after the Fed’s indecisive tone.

Others believe that macro uncertainty—especially around the December meeting—has created confusion rather than clarity. “Markets were hoping for a clear rate-cut commitment, not cautious ambiguity,” one strategist said. “That hesitation triggered a wave of risk-off sentiment, particularly in overleveraged sectors like crypto.”

Additionally, the U.S.–China talks, while constructive, did not produce any concrete agreements, leading investors to question whether progress will translate into policy changes before the upcoming Trump–Xi summit at APEC.

Market Outlook: Volatility Ahead

For now, Bitcoin remains trapped between rising whale demand and heavy technical resistance. If the $106,000 support holds, a rebound toward $110,000–$112,000 could unfold in the coming sessions. However, another wave of liquidations could easily send the price below $105,000 before stability returns.

Analysts see November as a make-or-break month, with macro conditions aligning for a potential rally—provided sentiment recovers and leverage resets. The coming days will test whether the current decline is merely a shakeout or the beginning of a deeper correction in the final quarter of 2025.

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