The crypto market has entered one of its steepest sell-offs in months, erasing over $90 billion in market value within just one hour and triggering more than $1.3 billion in liquidations as leveraged positions were wiped out across exchanges.
Bitcoin (BTC) plummeted below $105,000, extending a sharp correction that began late last week, while major altcoins such as Ethereum (ETH), Solana (SOL), and XRP followed suit with double-digit losses.
The latest crash stems largely from renewed Federal Reserve hawkishness that reignited fears across global risk markets.
Despite cutting rates by 25 basis points in October, Fed Chair Jerome Powell signaled that further rate cuts are not guaranteed, stressing that inflation remains “on the wrong path.” His remarks strengthened the U.S. dollar and sent shockwaves through speculative assets, including cryptocurrencies.
Bitcoin led the way with over $396 million in liquidated assets, followed closely by Ethereum at $368 million. The largest single liquidation event occurred on HTX Exchange, where a $47.8 million BTC-USDT long position was closed out.
The Crypto Fear and Greed Index has fallen to 21, deep in “Extreme Fear” territory. More than 327,000 traders have been wiped out in the past day, a figure reminiscent of the October 11 flash crash, when 1.6 million traders faced similar losses.
Market analysts see the correction as a “healthy reset” after months of aggressive rallies. However, if Bitcoin breaks below the $100,000 psychological support, experts warn of an additional 5–8% downside across the broader market. For now, traders are bracing for heightened volatility as the crypto storm intensifies.
Cover image from ChatGPT, BTCUSD chart from Tradingview
