Key Takeaways
- The crypto market experienced a significant downtrend on October 30, 2025, after a heavy liquidation of long traders.
- Bitcoin, the largest crypto by market cap, crashed on Thursday and fell below $107k.
- Latest market data suggest that $1.2 billion has been liquidated across Bitcoin and other top altcoins.
- Experts analyzed that the liquidation event was due to the macroeconomic uncertainty, including geopolitical tensions and disappointing Fed rate cut announcements.
- Despite the crash, the crypto market is showing recovery signs with a stabilized trading volume and upward price movements.
The whole crypto market experienced a significant liquidation, and around $1.2 billion in leveraged cryptocurrency positions were closed by exchanges due to the abrupt market downturn. The crypto market’s sudden bearish movement on Wednesday was due to the disappointing Fed rate cut announcements and ongoing geopolitical tensions. In the total $1.2 billion liquidations, around $984 million were from long positions and $163 million from shorts, and this has affected around 223,000 traders globally. The latest information confirmed that the largest liquidation was an over $21 million BTC-USD long position on Bybit.
BTC, the largest crypto by market cap, crashed, and its price dropped 4% on Thursday, and it reached a weekly low of $106,861 in the session. According to the latest market data, the total crypto market cap dropped 5% in the last 24 hours and is currently hovering around $3.6 trillion. Not only Bitcoin, but the altcoin market too was heavily impacted due to the liquidation. Prominent cryptocurrencies, including Ethereum (ETH), Solana (SOL), Dogecoin (DOGE), Cardano (ADA), and XRP, were all affected. Market analyst CryptOpus confirmed that in the past 24 hours, 223,506 traders had been liquidated, with the total liquidations coming in at $879.28M. They reported that the largest single liquidation order happened on Hyperliquid, with a BTC-USD value of $21.43M.
The heavy liquidation of long traders has created a bearish impact on the crypto market and forced the crypto market to experience a long squeeze on Thursday. Market analysts confirmed that out of the $1.24 billion liquidated from leveraged crypto trading, around $1.1 billion involved long traders. The bearish momentum was also due to the sell-the-news impact. The Federal Reserve initiated its second rate cut of 25 bps on Thursday, and additionally, the FED also announced that its Quantitative Easing (QE) would begin on December 1, 2025. The profit-taking and a wave of selling, especially in leveraged positions, due to these factors, contributed to the liquidation and ultimately led to the market downturn.
Crypto Market Is Recovering From the $1B Liquidation, But the Caution Remains!
The crypto market is slowly recovering from the $1 billion liquidations on Thursday. The latest market data suggest that the trading volumes have stabilized and digital assets’ prices have begun to stay at a steady rate after moving from their lows. The key recovery factors could be the short-term technical bounces that occurred today, the hopes for future Federal Reserve interest rate cuts, and the long-term optimism among investors. Altcoins like ETH, SOL, and XRP have managed to attract new capital, and the experts warned the investors that the relief or recovery rally might be underway, but the caution remains.
According to the latest market analytics, the market is stabilizing as prominent assets like Bitcoin(BTC) bounce back to $109,000, surpassing its key support around $108,000. Ethereum, on the other hand, managed to reach $3,850, boosting the whole crypto market performance. The recovery is supported by several factors: the Federal Reserve’s decision to end quantitative tightening in December provided a much-needed liquidity relief in the crypto market, and it helped reduce the market volatility after the October 30th turmoil. Stabilization of trading volumes and less aggressive selling pressure from long-term investors were the other major reasons that catalyzed market recovery. The positive signs of US-China trade relations and diplomatic developments have a significant role in the current market recovery.
Elon Musk’s Grok AI posted on X that liquidation heatmaps from aggregators like Coinglass and exchange data indicated over $3B in BTC short positions clustered near $112,600. They mentioned that with BTC trading around $110k, a push above that level could trigger cascading liquidations, amplifying upward momentum. They noted that actual outcomes varied by leverage and margins, but the figure aligned with current open interest reports.
