Although markets had been buoyed by months of bullish momentum, Bitcoin suffered a sudden reversal on November 3, 2025, slipping briefly below $108,000 and triggering a cascade of liquidations that wiped out over $147 million in perpetual futures positions, part of a wider $478 million purge across crypto markets within 24 hours. The move marked a sharp break from recent strength and followed a volatile October that ended Bitcoin’s seven-year “Uptober” streak, leaving the asset roughly 3.1% lower over the day and briefly touching $107,810 — its weakest level since early October. The liquidation event disproportionately affected leveraged long positions, with long-side losses accounting for roughly $422 million of the total wipeout, and the 24-hour liquidation tally represented a 377% surge relative to the prior day. Open interest contracted modestly, down 1.64% to about $154 billion, reflecting both forced position closures and heightened caution among derivatives traders. Market microstructure was a clear amplifier: thin liquidity in Asian session trading, coinciding with regional holidays, magnified price impacts from large sell orders and reduced the depth that might otherwise have absorbed the flow. Macro and headline factors compounded the technical stress. The U.S. Federal Reserve’s indication that a December rate cut was not assured lowered risk appetite, while geopolitical and political events — including attention on a Trump-Xi meeting and a high-profile media appearance — added to investor unease. An outsized insider sale of more than 12,500 BTC, valued near $1.4 billion, introduced acute selling pressure at a fragile moment, accelerating the cascade. Buying-the-dip activity was present but notably more cautious than prior recoveries. Altcoins retraced sharply, with Ethereum, Solana, XRP, Dogecoin and Cardano each sliding double digits in some cases, and the total crypto market capitalization eased about 3.6% to $3.6 trillion. The BTC dominance index rose to 55%, suggesting a rotation toward perceived relative safety within digital assets. Analysts noted $100,000 as a psychological support to watch, while institutional flows turned cautious and some whales accumulated during the dip, leaving open the possibility of stabilization if banking-sector and macro risks remain contained. Overall, the episode underscores persistent structural vulnerabilities in crypto liquidity and the speed with which leverage can translate headline shocks into market-wide dislocations. Insider activity was also linked to earlier flash crashes, raising alarms among market-watchers. This event highlights the critical importance of monitoring exchange wallets to detect whale-driven liquidity shifts that can trigger such sharp market movements.
