Bitcoin experienced a rapid decline to $100,000 before rebounding. Here’s an analysis of the $610 million in liquidations that occurred.

On November 12, Bitcoin dropped to $100,800, reflecting a 4.2% decrease within 24 hours, as the overall cryptocurrency market lost approximately $65 billion, before rebounding early in the morning to $103,000.

This decline led to over $610 million in liquidations of leveraged positions, as reported by Coinglass data. The sell-off was most pronounced during US trading hours, erasing gains made overnight and pushing BTC below intraday support levels, while also dragging down major altcoins.

The dollar gained strength ahead of the Nov. 13 release of the US consumer price index, following five consecutive days of correction. This trend typically exerts pressure on non-yielding assets like Bitcoin.

Odds for a Federal Reserve rate cut in December have diminished in recent sessions, removing a supportive factor that had benefited risk assets throughout October.

At the time of reporting, Polymarket’s probabilities of the Fed implementing a 25-basis-point interest rate cut are at 71%, a decrease from 90% in late October.

Current macroeconomic conditions are impacting crypto positioning as traders await inflation data that may clarify the Fed’s policy direction.

Leverage unwinds deepen the drop

The derivatives markets exacerbated the downturn. The liquidation cascade follows a pattern established since the significant unwinding events in October, where thin liquidity leads to rapid movements, and clustered stop-losses create exaggerated price tails when activated.

After weeks of erratic trading and gradual rebuilding of leverage, the positioning on Nov. 11 left the market susceptible to a flush once selling pressure emerged.

As of press time, Ethereum was trading at $3,246.40, up 0.25% in the last 24 hours, but lagging behind Bitcoin in relative performance.

Solana decreased by 1% to $153.21, BNB fell 0.6% to $952.12, Cardano dropped 1.6% to $0.5476, while both Dogecoin and XRP experienced a 2% decline, trading at $0.1686 and $2.34, respectively.

The varied performance indicates uneven flows and selective de-risking rather than a uniform capitulation.

Spot ETF Flows Split Between BTC and ETH

Spot Bitcoin ETFs saw net inflows of $524 million on Nov. 11, according to data from Farside Investors. This marks a recovery from previous sessions that provided brief support.

Conversely, Ethereum funds experienced approximately $107 million in net outflows, leaving ETH sentiment weak and contributing to its underperformance.

The disparity between BTC and ETH flows added pressure on altcoins and maintained a cautious sentiment in the broader market as traders approached Wednesday’s session.

Traders are now de-risking during rallies and responding to micro-liquidity pockets instead of increasing directional exposure.

Until CPI data clarifies the rate trajectory and Fed expectations stabilize, positioning remains defensive and susceptible to rapid reversals when stops cluster.

The market absorbed the selling without breaking significant technical support, but liquidity is thin enough that forced unwinds continue to cause substantial intraday fluctuations.

The post Bitcoin flash-crashed to $100k — then roared back. Here’s what really happened behind the $610M liquidations appeared first on CryptoSlate.