Crypto Market Suffers $1.3B in Liquidations and $140B Meltdown as Bitcoin Falls Below.

• The crypto market saw over $1.3 billion in liquidations, wiping out $140 million in market cap.

• Bitcoin dropped to October 10 crash levels while Solana dropped to $160k despite whale demand.

Crypto market sees $1.3B in liquidations amid panic amid rumors.

The crypto market reeled on November 4, 2025, losing an estimated $140 billion in total capitalization as Bitcoin dipped below $103,000, triggering sweeping liquidations across significant assets.

Market-wide sentiment flipped sharply negative amid a convergence of rumors, hacks, and institutional fund distress, pushing risk appetite to its weakest levels since the 10/10 crash.

More than 92,000 traders were liquidated as markets crashed, with long positions in Bitcoin and Ethereum hit hardest.

Over $1.3B in leveraged trades vanished in less than 24 hours, according to derivatives data, with the most significant single liquidation of $47.87 million on HTX (BTC-USDT).

Market observers report that “no buying, only selling” dominated the day’s order flow as traders capitulated, fearing the start of another crypto winter.

Rumors Spark Panic Selling

Fresh litigation rumors suggested market-maker Wintermute was preparing legal action against Binance over forced deleveraging tied to the 10/10 crash.

The claims ignited fear across social platforms, briefly wiping out over $600 million in open interest within an hour and pushing Solana down 6% in minutes.

Wintermute CEO Evgeny Gaevoy later dismissed the allegations, saying the firm had “no plans nor reason” to pursue action.

But the damage to sentiment was already visible.

Market Microstructure Weakens Further

A series of damaging events piled pressure on traders and funds. Stream Finance reported that an external manager had lost ~$93M from the protocol, triggering fears of insolvency contagion.

A $128M exploit added to the industry’s vulnerability, reinforcing bearish conviction. Amid compounded uncertainty across exchanges, DeFi platforms, and institutional fund managers, traders aggressively reduced risk exposure.

Solana suffered the most significant decline among major caps, tumbling 20% to $161.62, surpassing Ethereum’s 15% drop. Despite criticism from some market voices, others defended Solana’s strength, labeling it.

“the most usable chain with the most talent.”

On-chain data shows whales accumulated $421 million in SOL during the crash, a contrarian signal that may support eventual recovery.

This suggests large entities are positioning for medium- to long-term upside despite ongoing volatility.

ETF Inflows Remain Positive

Bitwise’s BSOL and Grayscale’s GSOL still pulled in $70 million in fresh inflows, reinforcing institutional confidence.

Bitwise leadership has implied that ETF flows could help stabilize SOL’s price over time.

CoinGlass data shows that 236,643 traders liquidated in 24 hours, with over $787.6 million liquidated (24h window). Total leveraged losses during the broader move exceed $1.36 billion.

The carnage pushed many traders to “throw in the towel,” with prominent positions unwinding across spot and derivatives markets.

Bitcoin Dominates But Fails to Hold $103K

Bitcoin’s inability to hold support triggered a cascade of long-side liquidations, resulting in a staggering $140B in total market-value losses.

This drop helped drag total crypto market capitalization to $3.44 trillion, down nearly 4% on the day.

Many traders now warn that this may mark the beginning of a longer retracement cycle, though whale activity in Solana suggests selective accumulation is underway.

What to expect next

Still, without relief catalysts, macro fear and on-chain stress may drag broader prices lower.

The crypto market’s $140B meltdown underscores the fragility of sentiment amid leverage unwinds, rumors, and cybersecurity events.

Bitcoin’s slide below $103K led to cascading liquidations, while Solana bore the deepest losses but also attracted heavy whale bids, suggesting long-term confidence remains intact.

Whether this marks the start of a prolonged downturn or a temporary flush before recovery will depend on ETF behavior, macro conditions, and whether institutional panic gives way to accumulation.