The cryptocurrency market experienced severe turbulence on November 5, with Bitcoin crashing through the critical $76,000 support level and wiping out $140 billion in total market capitalization within a mere four-hour span.
The decline erased gains from a previous rally that had pushed prices above $80,000 and rapidly escalated into a massive wave of liquidations across exchanges.
The core of market pressure stemmed from a confluence of multiple macro factors: a sudden selloff in U.S. technology stocks, deepening concerns over Federal Reserve monetary policy, and regulatory uncertainty potentially arising from midterm election results, all of which intensified selling pressure and drove Bitcoin down to approximately $75,900 at one point.
Data compiled by Woofun AI reveals that leveraged positions in the derivatives market bore the brunt of this volatility. Over the past 24 hours, a total of $1.05 billion in leveraged positions were forcibly liquidated, affecting 203,418 traders.
Structurally, long positions absorbed the vast majority of losses, with approximately $926.81 million in long orders liquidated, accounting for 88% of the total. By contrast, short liquidations amounted to only $126.6 million, representing 12%.
During the most intense four-hour window of selling pressure, liquidation volume reached $872.48 million, with longs comprising nearly 90% ($793 million) and shorts just $79.48 million. In the final hour alone, another $228.9 million in positions were liquidated, with long losses totaling $196.52 million.
The single largest liquidation occurred on the Binance platform, where an ETH/USDT long position was triggered at a price of $2,243.86, involving approximately $10.94 million.
A deeper driving factor lies in the strengthening correlation between crypto assets and traditional technology stocks. As investors reassess the profit outlook for large-scale investments in artificial intelligence, the Nasdaq Composite Index pulled back on Thursday, with semiconductor and AI-related stocks including Nvidia (NVDA.US), AMD (Advanced Micro Devices) (AMD.US), and Qualcomm (QCOM.US) suffering sharp declines.
A recent Bitfinex Alpha report noted that Bitcoin's 30-day correlation with the Nasdaq 100 index has climbed to 0.68, demonstrating an extremely strong linkage effect.
Meanwhile, the industry is still digesting the aftermath of the Binance security breach in late October, when approximately $6.3 billion in assets were stolen—a risk exposure that has further undermined market confidence.
If Bitcoin fails to solidify its current support zone, combined with continued weakness in U.S. equities, selling pressure could escalate further.