Bitcoin extended its decline on Tuesday, sliding below $105,000 as a massive $1.3 billion liquidation wave swept across the cryptocurrency market. The world’s largest digital asset fell 2.4% to $104,956.80 by 01:02 ET (06:02 GMT), deepening its losses after a nearly 4% drop in the previous session — its sharpest two-day fall since mid-October.
Data from CoinGlass revealed that over $1.27 billion in leveraged futures positions were liquidated in the past 24 hours, marking the largest flush-out of bullish bets in weeks. Most of the positions were longs, as traders expecting further upside were forced to exit amid Bitcoin’s sudden dip.
The move came amid a broader decline in risk assets, as investors reassessed the Federal Reserve’s interest rate outlook following mixed comments from policymakers.
Key Figures:
- Bitcoin: $104,956.80 (−2.4%)
- Liquidations: $1.27 billion in 24 hours
- 24-hour Low: $104,500
- Previous Session Loss: Nearly 4%
Fed Uncertainty Weighs on Crypto
Market sentiment weakened after Fed Governor Lisa Cook remarked that inflation was “moving in the right direction but not fast enough,” suggesting caution on near-term policy easing. San Francisco Fed President Mary Daly echoed a similar tone, saying it was “too early to commit to more rate cuts” without clear signs of cooling inflation.
The conflicting signals have left investors uncertain about whether the Fed will proceed with a December rate cut, leading to a pullback from riskier assets like cryptocurrencies.
A stronger U.S. dollar and rising Treasury yields further pressured Bitcoin, as higher yields often reduce the appeal of non-yielding assets such as digital currencies.
Adding to the unease, Bitcoin’s slide marked a volatile start to November — historically one of its strongest months. The current downturn follows its first October loss since 2018, raising doubts about the sustainability of the crypto rally seen earlier this year.
Altcoins Drop, Cipher Mining Surges
The broader crypto market mirrored Bitcoin’s weakness, with altcoins seeing steep declines:
- Ethereum (ETH): −6% to $3,497.92
- XRP: −5.5% to $2.28
- Solana (SOL): −10.1%
- Cardano (ADA): −5.5%
- Polygon (MATIC): −7.6%
- Dogecoin (DOGE): −5%, $TRUMP: −8.3%
Meanwhile, Cipher Mining (NASDAQ:CIFR) shares surged over 20% after signing a $5.5 billion, 15-year deal with Amazon Web Services (AWS) to provide 300 megawatts of AI infrastructure starting in 2026. The move highlights Cipher’s strategic pivot from crypto mining to AI-hosting services, signaling a diversification trend among blockchain infrastructure firms.
With $1.3 billion in liquidations, cautious Fed policy signals, and continued volatility, traders are bracing for a turbulent month ahead in the crypto markets.