Crypto Collapse : What Caused $1.1B To Vanish Overnight ?

The crypto market suffered a sharp pullback at the start of the week. While US stocks remained in the green, Bitcoin, Ethereum, and Dogecoin collapsed, triggering over $1.1 billion in liquidations within 24 hours. A sudden drop, without a clear catalyst, which exposes the weaknesses of an ecosystem still unstable and vulnerable to panic movements. This massive setback rekindles doubts about the market’s strength and investors’ resilience amidst an equally unpredictable volatility.

Over one billion dollars liquidated in 24 hours

This Monday, the crypto market was violently shaken by a wave of massive liquidations triggered in a matter of hours. According to CoinGlass data, over $1.1 billion in positions were liquidated in 24 hours, including $1.08 billion in long positions, meaning bets on the rise.

This movement caught many traders and investors off guard, as the drop happened without an obvious trigger. “Repeated tests of the same support levels are not a bullish signal”, commented CryptoQuant analyst Maartunn, highlighting that buyers “simply end up exhausting themselves” during these market weakness phases.

4/ 📉 Bitcoin has tested $107k support 4 times already.

Each test weakens buyer conviction at that level. If this continues, a breakdown becomes more likely. pic.twitter.com/vUakghIuJL

— Maartunn (@JA_Maartun) November 3, 2025

The largest losses affected the main cryptos, with a significant impact on all major altcoins. Here are the key figures of this black day :

• $1.1 billion in total liquidations ;

• $1.08 billion of these positions were long ;

• Bitcoin (BTC) : a 4 % drop, with $298M in positions liquidated, price at $105,699, lowest since October 17 ;

• Ethereum (ETH) : a 7 % drop, with $273M liquidated, price at $3,583, lowest in nearly three months;

• XRP : -7 % at $2.33 ;

• BNB, Solana, Dogecoin : daily drops close to 9 % each ;

• Total market capitalization : 3 % decrease over 24 hours, at $3.68 trillion.

This sudden correction happened while US stock markets posted slight gains, reinforcing the perception of a temporary decoupling between cryptos and traditional indexes. The absence of an immediate catalyst only heightened tension, prompting observers to question the nature of this drop.

Weak technical signals and persistent macroeconomic pressures

Beyond the raw figures and liquidation mechanics, several leading indicators reinforce the observation of a market under pressure.

Still according to Maartunn, the Coinbase premium, this gap between Bitcoin’s spot price on Coinbase and the average on other platforms, reversed at the market reopening Monday morning.

“The Coinbase premium turned negative again and continued to deepen at the market opening. This shows that American investors exert strong influence on the price, as last month”, he specified. This signal, often correlated with selling pressure from US institutional desks, reinforces the idea of a movement guided by arbitrage from big players rather than panicked retail investors.

The economic context also plays a significant role. Recent remarks by US Treasury Secretary Scott Bessent have cooled the mood. He acknowledged that “certain parts of the economy” might have been “pushed into recession” due to high rates.

A statement that contributed to tightening growth expectations ahead of a highly anticipated employment report. In this uncertain climate, Bitcoin ETF flows are revealing : $798.95 million net outflows were recorded last week, versus only $15.97 million net inflows into Ethereum ETFs.

Glassnode data also indicate a clear slowdown in institutional demand, with less than 0.6k BTC weekly net inflows into BlackRock’s ETF, compared to over 10k BTC weekly before previous rallies.

Facing this double slowdown, technical and fundamental, short-term prospects remain unclear. On one side, some analysts, like Shawn Young (MEXC Research), still count on a recovery towards $125,000 – $130,000 for Bitcoin by the end of the year, provided certain resistance levels are crossed. On the other hand, declining institutional flows, the current BTC consolidation between $108,000 and $110,000, and macroeconomic uncertainties suggest that caution remains warranted.