Ethereum and Solana Liquidations: Crypto Market Faces $1 Billion Wipeout
The cryptocurrency market experienced a brutal correction on November 4, 2025. Bitcoin dropped from $112,000 to below $106,000, triggering more than $1.27 billion in leveraged futures liquidations. Ethereum and Solana bore the brunt of this market turbulence, with combined losses exceeding $300 million in forced closures.
Ethereum and Solana Liquidations Hit Hard
Long traders accounted for nearly 90% of the liquidations, with more than $1.14 billion in bullish bets erased as prices fell from weekend highs. The selling pressure intensified during low-liquidity trading hours, amplifying price swings across major perpetual venues.
Ethereum and Solana saw similar pressure, with combined liquidations topping $300 million. Ethereum dropped approximately 7% within 24 hours, while Solana experienced an 8% decline. These sharp movements caught overleveraged traders off guard, forcing automatic position closures across multiple exchanges.
The largest single liquidation occurred on HTX. A $33.95 million BTC-USDT long was closed out. This demonstrates the scale of leveraged positions that unraveled during the correction.
Understanding Crypto Market Liquidations
Liquidations occur when traders using borrowed funds are forced to close their positions because their margin falls below required levels. The process happens automatically on crypto futures exchanges. When prices move sharply against a leveraged trade, platforms liquidate the position by selling it into the open market.
Large clusters of long liquidations can signal capitulation and potential short-term bottoms. This clearing event often marks a reset in overheated markets. Traders who survived the liquidation cascade may view this as an opportunity to re-enter at lower levels.
Exchange Data Reveals Liquidation Scale
Hyperliquid led all platforms in overall activity, registering $374 million in forced closures, with 98% of those being longs. Bybit followed with $315 million in liquidations, while Binance recorded $250 million. The concentration of liquidations on these major platforms highlights how interconnected leverage is across the crypto ecosystem.
The flush followed Bitcoin’s rejection above $113,000. Thin order books across major perpetual venues amplified price swings as cascading liquidations hit during low-liquidity hours. This created a domino effect where each liquidation triggered additional selling pressure.
Market Implications for Ethereum and Solana
With open interest remaining near $30 billion and funding rates easing only slightly, traders appear wary of further volatility ahead of the Federal Reserve’s rate decision later this week. The market has not fully de-risked despite the massive liquidation event.
Altcoins tracked lower amid fading speculative appetite. The correction serves as a reminder that excessive leverage remains a persistent risk in crypto markets. Traders using 10x leverage or higher were the first to see their positions liquidated, followed by those with more conservative margin ratios.
Technical indicators suggest key liquidation zones existed around $105,000 for Bitcoin, $3,600 for Ethereum, and $180 for Solana. These psychological thresholds functioned as liquidity magnets, pulling price action downward.
What Comes Next After the Ethereum Solana Liquidations
Such events typically mark short-term “clearing moments” in overheated markets, where leverage resets and spot buyers gradually step back in. The $1 billion liquidation cascade may have cleared out weak hands, potentially setting the stage for more sustainable price action.
However, market participants remain cautious. The combination of macro uncertainty and elevated open interest suggests volatility could persist. Traders should monitor funding rates and open interest levels for signs of renewed speculative excess.
Conclusion
The November 4 liquidation event underscores the importance of risk management in cryptocurrency trading. While leverage can amplify gains, it also magnifies losses during sharp market corrections. Ethereum and Solana demonstrated vulnerability to cascading liquidations when market conditions deteriorated rapidly.
