Bitcoin fell below $106,300, marking a 3.8% daily decline, as over $1.13 billion in leveraged positions were liquidated within 24 hours. The sell-off was largely driven by macroeconomic headwinds, ETF outflows, and profit-taking following last week’s modest recovery.
Hawkish Fed Comments Pressure Risk Assets
Recent statements from Federal Reserve officials reaffirmed a hawkish monetary stance, dampening expectations for early 2026 rate cuts. Higher interest rates continue to make traditional fixed-income investments more appealing, prompting capital outflows from volatile assets such as Bitcoin. Analysts note that the market is recalibrating to a longer ‘higher-for-longer’ rate environment, which tends to suppress crypto market momentum.
Profit-Taking and Liquidations Intensify
After briefly stabilizing above $110,000, Bitcoin faced a wave of profit-taking and long liquidations. Data shows that in the past hour alone, over $610 million was wiped out, with $595 million of that from long traders. Across the past 24 hours, long liquidations totaled $1.05 billion, while shorts accounted for roughly $79 million, underscoring the imbalance of bullish leverage.
ETF Outflows and Institutional Cooling
The downturn also coincided with renewed outflows from Bitcoin spot ETFs, signaling declining institutional appetite. After weeks of steady inflows, funds have seen capital move out as investors react to weaker near-term catalysts and a cautious macro backdrop.
Sentiment Shifts Toward Fear
The Fear & Greed Index has dropped into “Fear” territory for the first time since late September, suggesting growing market unease. Meanwhile, Bitcoin’s 24-hour trading volume jumped 65.6% to $52.6 billion, reflecting heightened volatility and forced selling activity.
Broader Market Impact
The broader crypto market mirrored Bitcoin’s losses, with top altcoins also trading lower. Analysts warn that unless Bitcoin reclaims short-term support near $108,000, selling pressure could persist toward the $103,000–$104,000 range.
Despite the decline, Bitcoin’s market cap remains at $2.11 trillion, with circulating supply steady at 19.94 million BTC. The sell-off, while sharp, may offer long-term investors an opportunity to accumulate, though macro risks remain front and center heading into November’s first full trading week.