In just four hours, another massive crypto crash wiped out $140 billion in market cap as BTC crumbled below the key $76K support level on Nov. 5.
The significant market retracement wiped out a huge part of recent gains, sending a massive wave of liquidations across major crypto exchanges.
At its lowest point, Bitcoin fell to around $75,900 as selling pressure ramped up, unwinding its recent rebound above the $80K mark on Nov. 4.
The recent crypto market crash also coincides with a sudden drop in U.S. tech stocks, further concerns over Fed monetary policy, and uncertainty over the implications of the U.S. midterm elections for regulation.
Over $1 billion liquidated in 24 hours
As per data from cryptocurrency derivatives analytics service CoinGlass, a huge sum of $1.05B in leveraged crypto positions has been liquidated in the last 24 hours, impacting 203,418 crypto traders.
The vast majority of liquidations involved long positions, with about $926.81 million (88%) wiped out, while shorts saw roughly $126.60 million (12%) liquidated.
In the last four hours, a total of $872.48 million in positions were wiped out as selling pressure peaked.
This includes $793M in longs and only $79.48 million in shorts.
In the last hour, there were $228.90 million in liquidations, with $196.52 million in longs.
The biggest single liquidation recorded by CoinGlass was on Binance, where a long ETH/USDT position was liquidated for roughly $10.94 million at $2,243.86.
What’s causing the latest crypto market crash?
As reported by Reuters, the Nasdaq Composite index slid toward correction levels on Thursday as investors continued to review the profitability of large investments in artificial intelligence (AI).
The stocks of major semiconductor and AI-related firms, such as Nvidia, AMD, Qualcomm, and others, were hammered in the process.
The crypto market is becoming more sensitive to tech stock movements. As per the recent Bitfinex Alpha report, the 30-day correlation between Bitcoin and the Nasdaq 100 climbed to 0.68.
This shows a strong correlation between these two markets.
In the meantime, the crypto space is still dealing with the aftermath of the huge security breach at Binance at the end of October, with around $6.3B in stolen assets.
If BTC fails to hold this support area, selling could accelerate, especially if U.S. equities remain in their current state.
