$90 Billion Vanishes in an Hour, Over $1.3B Liquidated as Bitcoin, Solana, and Ethereum Collapse to Multi-Month Lows
Key Highlights:
• Over $1.3 billion in leveraged crypto positions were liquidated as Bitcoin crashed below $106,000, wiping out $90 billion in market value within an hour.
• Simon warned in our previous MCP YouTube stream that Bitcoin long-term holders were sending coins to exchanges, a classic precursor to major liquidations.
Yello Paradisers! It was a brutal day across crypto markets. In less than sixty minutes, over $90 billion in market value evaporated, with more than $1.3 billion in leveraged positions liquidated across major exchanges. Bitcoin plunged below $102,000, dragging Ethereum, Solana, and XRP into double-digit losses.
But as many traders were caught off guard, one prediction stood out.
During last MCP YouTube stream, Simon dissected on-chain data showing Bitcoin long-term holders moving coins onto exchanges, a red flag that often signals distribution before a correction. He specifically warned that if leveraged longs didn’t de-risk, “we could see billions wiped out in hours.” That’s exactly what happened.
You can watch that segment here, where Simon also noted trader James Wynn’s bold short position on Bitcoin, one that now looks prescient in hindsight.
Fed Fear Meets Leverage Greed
This crash wasn’t just about technicals, it was triggered by a cocktail of macro panic and market leverage. Following Fed Chair Jerome Powell’s hawkish tone last week, investors were forced to rethink rate-cut expectations. Despite October’s 25bps reduction, Powell stressed that inflation remains “on the wrong path,” sending the U.S. dollar index (DXY) soaring above 100, and speculative markets into chaos.
Bitcoin’s fall from $112,000 to below $102,000 triggered $1.30 billion in liquidations, nearly 90% of that came from long positions. The largest single wipeout? A $47.8 million BTC-USDT long on HTX Exchange. Over 327,000 traders were wiped out in 24 hours, the worst since the October 11 flash crash.
Solana, Ethereum, and the Altcoin Wreckage
The pain wasn’t limited to Bitcoin. Solana collapsed below $160, while Ethereum slid below $3,500, both seeing hundreds of millions in long positions liquidated. Altcoins with thinner liquidity took heavier blows as cascading sell orders deepened the rout.
Hyperliquid led all platforms with $374 million liquidated (98% of which were longs), followed by Bybit ($315M) and Binance ($250M). Total open interest across futures markets remains high, around $30 billion, suggesting the shakeout might not be over yet.
The Crypto Fear & Greed Index now reads 21, Extreme Fear. Historically, such readings have marked capitulation zones where long-term investors start buying from panic sellers. But in the short term, volatility remains king.
What Comes Next: Panic or Opportunity?
With the Federal Reserve’s next policy meeting looming, markets are walking a tightrope. Some analysts see this as a healthy reset that clears leverage before the next leg higher; others fear a deeper macro-driven sell-off if liquidity conditions tighten further.
Simon will break down in our next MCP YouTube stream how this liquidation cascade could set the stage for either a relief rally or another flash crash, using live on-chain data and ETF flow analysis. Don’t miss his dissection, it’s exactly what you need to see before the next Fed move hits.
And for those who want real-time breakdowns like this before they hit the headlines, subscribe to MCP News Private for just $3/month, cheaper than a haircut, yet worth more than a missed entry.
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