Crypto Liquidations Exceed $520M as BTC, ETH, XRP, SOL Fall
Crypto market liquidations topped $520M on Nov. 12 as BTC, ETH, XRP and SOL fell between 2% and 6%. Over $400M in long liquidations wiped out Monday’s gains, driving the total crypto market cap down 2.1% to $3.56 T. Bitcoin slid to an intraday low of $102,461 before recovering near $103,250. Ethereum traded around $3,450, while Solana dropped 5.4%. Altcoins like XRP, BNB and Dogecoin each lost over 3%. The Crypto Fear & Greed Index returned to “Extreme Fear”, reflecting bearish market sentiment. Macro pressures included profit-taking, U.S. shutdown worries, and China’s $13 B BTC theft allegations. SoftBank’s $5.8 B sale of Nvidia shares also hit risk assets. Meanwhile, AI-focused tokens shed 5.5% of their $26.6 B market cap, led by IP, TAO and RNDR. This level of crypto market liquidations signals heightened risk for bullish traders amid ongoing volatility.
Bearish
The surge in crypto market liquidations exceeding $520M reflects a clear bearish signal. Long positions worth over $400M were forcibly closed, indicating that bullish traders were caught off guard. Historically, large-scale liquidations—such as the $19 B wipeout last month—have triggered chain reactions of forced selling and deepened downturns. The return of the Fear & Greed Index to “Extreme Fear” underscores widespread risk aversion. Macro factors, including government shutdown concerns, tariff debates, profit-taking, and China’s BTC theft allegations, compound selling pressure. Tech sector volatility following SoftBank’s Nvidia sell-off further amplified risk-off sentiment. In the short term, forced sell-offs and negative macro news are likely to sustain downward pressure. Long term, the market may stabilize once selling exhausts, but traders should remain cautious amid potential volatility spikes and monitor liquidation levels closely.