How the selloff unfolded
Bitcoin hit an intraday low of $74,780.91 on November 6. That marked its weakest intraday level since August 21.
The world’s largest crypto fell nearly 6% during the episode. Ethereum had it worse, sliding more than 7% to about $2,247.
$XRP and Solana also broke below critical support levels.
Long positions accounted for approximately $930 million of the total, or 88.2%.
Bitcoin positions accounted for around $267 million in liquidations during the key session. Ethereum followed with approximately $167 million, and $XRP and Solana added further losses on top.
Nearly 211,000 traders were hit by the liquidations. Most of the damage landed on major exchanges like Binance.
Why leverage turns a dip into a cascade
When a trader borrows to amplify a bet and the price moves against them, the exchange automatically closes the position once collateral runs thin. That forced closure is a liquidation.
The problem is that liquidating a long position means selling. That selling pushes prices lower, which triggers the next batch of liquidations, which means more selling.
That chain reaction is how a market can shed $1 billion in leveraged bets in a matter of minutes, as the viral post described.
The Wall Street connection
The Nasdaq Composite fell 5.5% amid turmoil across AI and chip stocks. Escalating worries about the AI sector’s growth prospects collided with uncertainty in the post-midterm election landscape.
Bitcoin ETFs added to the pressure. The selloff coincided with hefty outflows from the funds, giving prices another downward shove.
Sentiment followed price. The Fear & Greed Index, a popular gauge of crypto market mood, slipped into “fear” territory, resetting the bullish tone that had been building.
What this means for traders and investors
The most immediate takeaway is about leverage, not direction. A nearly 6% move in Bitcoin is unremarkable by crypto standards. The lopsided 88.2% share of long liquidations suggests the market was crowded on one side heading into the drop.
The bigger story for investors is correlation. Crypto’s fate this week was decided largely by what happened to AI and chip stocks, not by anything happening on a blockchain.