Over $1 Billion in Liquidations — Why Bitcoin Took a Nosedive

Why the crypto rodeo turned into a rodeo clown show

Bitcoin slipped past the $106.5k mark on Nov. 3 and then sank under $104k for a sustained stretch — the first time since June. That one-day drop was roughly 3.6%, and it wasn’t picky: Ethereum dropped into the mid-$3,000s (about a 9% slide), Solana plunged into the $150s (roughly down 13%), and names like XRP, Cardano, Dogecoin, and BNB posted double-digit losses too. In short: bad mood across the board.

One big culprit? The US dollar got a little swole. The dollar index was near a three-month high (around 99.9), and when the greenback flexes, non-yielding assets like Bitcoin often get shoved to the bench. Investors tend to favor dollar-denominated instruments that actually pay a yield, so demand for crypto can evaporate fast.

Then there’s the ETF drama. US spot Bitcoin ETFs recorded roughly $1.15 billion in outflows during October, which removed a chunk of steady demand that had previously helped soak up selling. Without that cushion, price drops cascade easier.

To make matters worse, leveraged traders got the squeeze. Over the past 24 hours about $1.15 billion of long positions were liquidated across derivatives markets, with around $330 million of that pressure hitting Ethereum futures after ETH slipped under about $3,900. Forced liquidations are like adding gasoline to a small fire — they accelerate the fall.

What to watch this week (aka: should you hide under a blanket?)

There’s a busy US economic calendar coming up that could decide whether the dollar keeps stomping around. Key reports include ISM manufacturing, services PMI, ADP employment numbers, and the big one: November’s nonfarm payrolls. Consumer sentiment data is also due. If the data keeps the Fed on a hawkish streak, the dollar may stay strong and markets could stay jittery.

If the dollar reverses course, that would take some pressure off crypto — ETF flows could stabilize, forced sellers might dry up, and volatility could calm down. Until then, absence of fresh ETF inflows plus the overhang from liquidated leveraged positions leaves digital assets vulnerable to more swings.

Short version: dollar strength + ETF outflows + mass liquidations = recipe for a rough day. Not the end of the world, but definitely a reminder that crypto markets can turn on a dime.

Not financial advice. If you’re thinking of trading, maybe breathe, read the data, and don’t trade with money you’d miss at dinner.