Crypto Market Plummets $90B in an Hour Amid $1.3B Liquidations

The crypto market experienced a significant sell-off, erasing over $90 billion in market value within an hour and leading to over $1.3 billion in liquidations across exchanges.

Bitcoin fell below $105,000, with major altcoins like Ethereum, Solana, and XRP experiencing double-digit losses.

Fed’s Hawkish Stance Sparks Panic

The Federal Reserve's hawkish stance, despite a 25 basis point rate cut in October, contributed to fears in global risk markets.
Fed Chair Powell emphasized inflation concerns, strengthening the U.S. dollar and impacting speculative assets, including cryptocurrencies.
The U.S. Dollar Index surged above 100, leading to technical selling as Bitcoin lost key support zones at $110,000 and $106,000.
Institutional investors sold positions via U.S. spot Bitcoin ETFs, intensifying the downtrend.

Mass Liquidations Impact Traders

Total liquidations exceeded $1.37 billion, with long positions making up nearly 90%. Bitcoin saw $396 million in liquidated assets, followed by Ethereum at $368 million.
The largest single liquidation was a $47.8 million BTC-USDT long position on HTX Exchange.
The Crypto Fear and Greed Index dropped to 21, indicating "Extreme Fear." Over 327,000 traders were affected in the past day.

Altcoins Suffer Heaviest Losses

Altcoins faced greater losses than Bitcoin due to thin liquidity and sell orders. Solana fell below $160, Ethereum to $3,500, while XRP and Cardano decreased over 5.5%.
The total crypto market cap is below $3.5 trillion, reaching its lowest since July.

Market analysts describe the correction as a "healthy reset" after aggressive rallies. However, breaking below the $100,000 support could lead to further market declines of 5–8%.