$1 Billion in Crypto Liquidations as Bitcoin, Ethereum Slide

Crypto markets shed roughly $1 billion in leveraged positions on November 6 as Bitcoin touched $74,780.91, its weakest intraday level since August 21, with liquidations overwhelmingly concentrated on the long side of the trade.

Ethereum fared worse than Bitcoin in percentage terms. It slid more than 7% to roughly $2,247, while XRP and Solana both broke below critical support levels, adding to the session's damage.

Where did the liquidations land?

Long positions accounted for approximately $930 million of the total, or 88.2%, according to liquidation data from the selloff. That lopsided share tells the real story: the market was crowded on one side heading into the drop.

The breakdown by asset:

• Bitcoin positions: approximately $267 million liquidated during the key session
• Ethereum positions: approximately $167 million
• XRP and Solana: further losses on top, both breaking support

Nearly 211,000 traders were hit. Most of the damage landed on major exchanges like Binance.

Why does leverage turn a dip into a cascade?

The mechanics are simple and brutal. When a trader borrows to amplify a bet and price moves against them, the exchange automatically closes the position once collateral runs thin. That forced closure is a liquidation.

Liquidating a long position means selling. That selling pushes prices lower, which triggers the next batch of liquidations, which means more selling. That chain reaction is how a market can shed $1 billion in leveraged bets in a matter of minutes.

What was the Wall Street connection?

The crypto plunge didn't happen in isolation. The Nasdaq Composite fell 5.5% the same day amid turmoil across AI and chip stocks, as escalating worries about the AI sector's growth prospects collided with post-midterm election uncertainty.

Bitcoin ETFs added to the pressure. The selloff coincided with hefty outflows from the funds, giving prices another downward shove on top of the equity-driven risk-off move.

Sentiment followed price. The Fear & Greed Index slipped into "fear" territory, resetting the bullish tone that had been building in the weeks prior.

What does this mean for traders?

The most immediate takeaway is about leverage, not direction. A nearly 6% drop in Bitcoin is unremarkable by crypto standards. What turned an ordinary pullback into a billion-dollar wipeout was positioning: too many traders leaning the same way with borrowed money.

The bigger story for investors is correlation. Crypto's fate this week was decided largely by what happened to AI and chip stocks, not by anything happening on a blockchain. For a market that pitches itself as an independent asset class, that's an uncomfortable signal.

The liquidation cascade also carries an operational lesson for exchanges and market makers: when 88.2% of forced closures sit on one side of the book, order books thin out fast and recovery takes longer. Traders watching the Fear & Greed Index will be looking for whether sentiment stabilizes above "fear" in the coming sessions, or whether another leg in the AI stock selloff drags crypto down with it.