The cryptocurrency market experienced sharp turmoil on November 5, as Bitcoin’s price broke below the key support level of $76,000, the total market capitalization shrank by $140 billion within four hours, and gains from the previous climb above $80,000 were largely erased, with the market rapidly forming a large-scale liquidation wave. Multiple macro factors jointly pushed up selling pressure, as the downturn in U.S. technology stocks, market concerns over the Federal Reserve’s monetary policy, and regulatory uncertainty brought by the midterm elections jointly weighed on the market, with Bitcoin falling to a intraday low of around $75,900. Data compiled by Woofun AI shows that highly leveraged positions in the derivatives market became the main pressure-bearing target of this round of volatility, with a total of $1.09 billion in leveraged positions forcibly liquidated within 24 hours, affecting a total of 211,460 traders.
The liquidation losses in this round were concentrated on the long side, with long position liquidations amounting to $952.34 million, accounting for 87.7% of total liquidations, while short position liquidations amounted to only $133.23 million. Liquidations over the most recent 12 hours totaled nearly $1 billion, accounting for more than 90% of the total liquidation amount. By asset, Bitcoin had the highest liquidation volume at $281.51 million, followed by Ethereum, while Solana and Hyperliquid also saw liquidations of a certain scale. At the exchange level, Binance accounted for the highest share of liquidations, and the single largest liquidation order also appeared in Binance’s Ethereum perpetual futures market, which was a long order worth approximately $10.94 million.
The co-movement effect between crypto assets and U.S. technology stocks continued to strengthen, as the Nasdaq Composite Index pulled back and AI and semiconductor stocks such as Nvidia (NVDA), AMD (AMD), and Qualcomm (QCOM) moved lower. A Bitfinex Alpha report shows that the 30-day correlation between Bitcoin and the Nasdaq 100 Index rose to 0.68, indicating notable co-movement. Meanwhile, the market was still digesting the negative impact of the Binance security breach at the end of October, when approximately $6.3 billion in assets were stolen, further weakening market confidence. CoinGlass data shows that at 5:30 a.m. on the 6th, Bitcoin was down 5.13% from 24 hours earlier, while mainstream coins such as Ethereum and Solana fell in sync. When Bitcoin briefly broke above $81,000 earlier, open interest grew by only 0.3%, and this round of gains was driven by short covering and lacked support from new spot capital inflows, making the rally itself relatively weak.
$73,000 is regarded as the first line of defense over the medium and long term. Trader Daan Crypto Trades mentioned that on the weekly timeframe Bitcoin remains in a major support area, and if this week’s closing price falls below $73,000, the market may shift into a trending decline. Bitcoin’s average market cost is about $77,700, and the current price is already below the average holding cost, so whether the $75,000 threshold is held or lost will determine whether the market continues to see selling or ushers in a technical rebound.
The subsequent direction of the market will depend, on the one hand, on changes in the U.S. technology sector and Federal Reserve expectations, and, on the other hand, on whether Bitcoin can hold the key support zone. Once support is lost, downward pressure will be further amplified.
