Important points
- The cryptocurrency market experienced a significant downtrend on October 30, 2025 after a large-scale liquidation of long traders.
- Bitcoin, the largest cryptocurrency by market capitalization, tumbled on Thursday, dropping below $107,000.
- According to the latest market data, $1.2 billion was liquidated across Bitcoin and other top altcoins.
- Experts say the liquidation incident was caused by macroeconomic uncertainty, including geopolitical tensions and the Fed’s disappointing announcement of interest rate cuts.
- Despite the crash, the cryptocurrency market is showing signs of recovery with stable trading volumes and rising prices.
The entire crypto market experienced a massive liquidation, with approximately $1.2 billion of leveraged crypto positions being closed by exchanges due to the sudden downturn in the market. The sudden bearish move in the cryptocurrency market on Wednesday was due to disappointing results. Fed rate cut announcement and ongoing geopolitical tensions. Of the $1.2 billion in total liquidations, approximately $984 million were long positions and $163 million were short positions, affecting approximately 223,000 traders worldwide. The latest information confirms that the largest liquidation was a long BTC-USD position of over $21 million on Bybit.
BTC, the world’s largest virtual currency Market capitalizationThe stock plunged, with prices falling 4% on Thursday and hitting a weekly low of $106,861 during trading. According to the latest market data, the market capitalization of cryptocurrencies has fallen by 5% in the past 24 hours and is currently hovering around $3.6 trillion. In addition to Bitcoin, the altcoin market was also significantly affected by the liquidation. Prominent cryptocurrencies such as Ethereum (ETH), Solana (SOL), Dogecoin (DOGE), Cardano (ADA), and XRP were all affected. Market analyst CryptOpus confirmed that 223,506 traders were liquidated in the past 24 hours, bringing the total liquidation amount to $879.28 million. They reported that the single largest liquidation order occurred on Hyperliquid, with a BTC-USD value of $21.43 million.
The large-scale liquidation of long traders had a bearish impact on the crypto market, forcing the crypto market into an extended squeeze on Thursday. Market analysts confirmed that of the $1.24 billion liquidated in leveraged cryptocurrency trades, about $1.1 billion involved long traders. The bearish momentum was also influenced by selling news. The Fed began its second rate cut of 25 bps on Thursday, and the Fed also announced: quantitative easing (Quantitative easing) is scheduled to begin on December 1, 2025. These factors led to waves of profit taking and selling, especially on leveraged positions, which contributed to liquidations and ultimately led to market declines.
Crypto Market Is Recovering From $1 Billion Liquidation, But Caution Remains!
The cryptocurrency market is slowly recovering from Thursday’s $1 billion liquidation. The latest market data suggests that trading volumes have stabilized and digital asset prices are starting to maintain stable rates after moving from their lows. The main recovery factors are likely to be the short-term technical rebound that occurred today, expectations for future Federal Reserve rate cuts, and long-term investor optimism. Altcoins such as ETH, SOL, and XRP have been successful in attracting new capital, and experts have warned investors that a rescue or recovery rally may be underway, but caution remains.
According to the latest market analysis, the market is stabilizing with prominent assets such as: Bitcoin(BTC) rebounded to $109,000, breaking above the major support near $108,000. Meanwhile, Ethereum managed to reach $3,850, boosting the overall cryptocurrency market performance. This recovery is supported by several factors. The Federal Reserve’s decision to end quantitative tightening in December provided much-needed liquidity relief to the cryptocurrency market and helped reduce market volatility following the October 30th turmoil. Stable trading volumes and less aggressive selling pressure from long-term investors were also key reasons driving the market recovery. Positive signs of US-China trade relations and diplomatic developments are playing an important role in the current market recovery.
Elon Musk’s Grok AI posted on X that liquidation heatmaps and exchange data from aggregators such as Coinglass showed that more than $3 billion in BTC short positions were concentrated around $112,600. They said that with BTC trading at around $110,000, exceeding that level could trigger a chain liquidation and amplify the upward momentum. They noted that actual results will vary based on leverage and margin, but the numbers are consistent with current open interest reports.
