What Happened in Crypto Today, $1.3B Crypto Market Crash Hit Hard

Crypto Market Crash Deepens as Long Positions Face Heavy Liquidation

The crypto market fell sharply in the last 24 hours, dropping 4.4% from $3.45 trillion to $3.3 trillion. This marks a total monthly fall of nearly 18%, as fear and uncertainty take over. Analysts say the Crypto Market Crash was caused by a mix of Fed actions, ETF outflows, and huge liquidations across exchanges.

Fed Liquidity Injection Adds to Market Confusion

The Federal Reserve (Fed) injected $29.4 billion into the U.S. banking system through overnight repo operations, its biggest single-day cash move since the dot-com era. At the same time, China’s central bank added record cash to its own system.

While liquidity injections usually support markets, this time they signaled stress in the global financial system. Analysts believe the Fed acted to calm rising pressure in short-term funding markets after Treasury yields spiked.

However, uncertainty grew when Fed Governor Christopher Waller hinted at a December rate cut, while Chair Jerome Powell stayed cautious. The odds of a December rate cut have now fallen to 67%, down from over 90% a week ago.

Bitcoin Drops Below $104K as ETF Outflows Mount

Bitcoin (BTC) slipped below the $104,000 support level, sparking panic selling across the space. U.S. spot Bitcoin ETFs saw a net outflow of $186.5 million in a single day, and nearly $946 million over the week. Growing fears of a potential U.S. government shutdown also added pressure, pushing investors toward safe assets.

Source: X (Previously Twitter) 

These outflows show that institutional investors are turning more cautious as confidence in the near-term outlook fades.

$1.3 Billion Liquidated in 24 Hours

According to Coinglass, over 333,000 traders were liquidated in the past 24 hours totaling $1.37 billion in losses.

Source: Coinglass

• 90% of those were long positions, which means traders betting on price gains were caught off guard.

• The largest liquidation occurred on HTX with a BTC-USDT trade worth $47.87 million.

• Losses were led by Bitcoin with liquidated positions of $407M, Ethereum with $355M liquidated, and Solana with $156M liquidated.

This huge sell-off is indicative of how quickly a high-leverage market can flip when prices fall sharply, fueling the Crypto Crash.

Fear Dominates 

The Crypto Fear & Greed Index has tumbled to 22, indicating a strong “Fear” zone. The gauge is so low that it means traders have become scared and are avoiding risky trades. Historically, markets often mark bottoms with such extreme fear, though it could suggest deeper panic as overall sentiment continues to deteriorate.

Source: Coinglass

According to the data, traders now are holding stablecoins and withdrawing money, not buying the dip.

FUD and Market Sentiment

Meanwhile, Binance's founder CZ contributed to the panic. He warned about "random FUD in the market right now," signaling that whales are spreading fear to profit from small traders, urging the public to check their information before reacting.

What's Next for the Crypto?

The coming days could be key: if the Fed maintains high liquidity and inflation is contained, Bitcoin might rebound; on the other hand, if the Fed tightens up on liquidity or slows down rate cuts, selling may well continue into December.

For now, the Crypto Market Crash reminds us all that volatility is still the market's biggest constant and that fear can spread faster than any rally.