Bitcoin Suffers $1B Liquidation Shock as Tech Stock Rout Smashes Crowded Crypto Long Positions

Bitcoin suffered more than $1.05 billion (£865 million) in forced liquidations in just 24 hours as a sharp rout in US technology shares knocked the world's largest cryptocurrency to its lowest level since August.

Bitcoin fell to an intraday low of $74,780.91 (£61,300) on 6 November, its weakest since 21 August, according to market data cited in reporting that day. Its decline approached 6% over the reported trading period.

Ethereum fell more than 7% to about $2,247 (£1,840). XRP and Solana also declined, extending losses across the largest digital assets.

CoinGlass data showed roughly $1.05 billion (£865 million) of crypto derivatives positions were liquidated in the 24 hours to 6 November. Bitcoin accounted for about $267 million (£219 million) of the total. Nearly 211,000 traders were affected, according to derivatives‑market data cited in reporting on 6 November.

Long Bets Hit Hardest in Broad Liquidation Wave

Long positions, which are bets on higher prices, made up about $930.04 million (£765 million) of the liquidations, or 88.2% of the total. Short positions accounted for $124.69 million (£102 million).

The figures indicate that bullish leveraged trades took most of the damage. They do not show how all market participants were positioned.

Leveraged trading lets investors increase their market exposure beyond the capital they commit. Depending on the product, they may borrow funds or use derivatives such as futures contracts, posting collateral to maintain their positions.

If a position's margin falls below the exchange's required maintenance level, the platform may close it automatically to limit further losses.

Those closures can add to selling pressure in a falling market, triggering further liquidations and creating a feedback loop. The extent of the effect depends on the product, the exchange and available market liquidity.

Tech Stock Rout Ripples Across Crypto Markets

The crypto losses followed a sharp fall in US equities. The Nasdaq Composite dropped 5.5% on Thursday 5 November, its steepest one‑day decline since April 2025, as investors sold AI and semiconductor stocks amid concerns about tighter scrutiny of data‑centre expansion.

Reuters reported that the sell‑off wiped about $2.5 trillion (£2.08 trillion) from the Nasdaq's value, though the precise scope of that figure has yet to be confirmed.

Bitcoin and other major digital assets fell alongside technology shares, suggesting broader investor risk aversion may have contributed. However, the available evidence does not establish that the equity sell‑off was the sole or primary cause of the crypto decline.

Bitcoin exchange‑traded funds also faced heavy withdrawals. US spot Bitcoin ETFs recorded about $430.2 million (£358 million) in net outflows on 5 November, according to figures attributed to Farside Investors. The outflows coincided with the market decline, but their contribution to Bitcoin's price movement remains unclear.

The Crypto Fear & Greed Index, which combines indicators including volatility, trading momentum, volume, social media activity and Bitcoin dominance, moved into fear territory. It is not a direct measure of buying activity, but it points to a deterioration in investor confidence.

Safe‑Haven Narrative Tested as Correlations Tighten

The longer‑term consequences of the liquidation wave remain uncertain. The episode has renewed questions about Bitcoin's reputation as a potential hedge against macroeconomic uncertainty. During this sell‑off, it and other major cryptocurrencies moved lower alongside technology stocks, behaving more like risk‑sensitive assets than traditional safe havens.

It also shows that cryptocurrency markets are not insulated from traditional financial markets. Shifts in investor sentiment towards technology shares can coincide with sharp moves in Bitcoin and the wider digital‑asset market.