$170 Billion Vanishes from Crypto Market in 24 Hours – What’s Driving the Massive Sell-Off?

23 Answer

• Likely due to a "risk-off" sentiment from high inflation/rising interest rates, causing leveraged positions to be liquidated. It signals a sharp correction unless a major crypto project (like a stablecoin) fails, which could trigger a deeper crash.

  agnesss  · 2025-10-28 ·  3 months ago

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• A single-day drop of that magnitude is typically a violent deleveraging event, not just a simple correction. The primary driver is a cascade of liquidations in the derivatives market, where over-leveraged long positions are forcibly closed, creating a self-reinforcing cycle of selling.

  
  

  This was likely triggered by a shift in macro expectations—such as hotter inflation data reducing the odds of imminent interest rate cuts—which spooked the market. While this doesn't necessarily signal a prolonged bear market, it does indicate that the market was overly optimistic and built on weak leverage. The key question is whether this flush-out creates a healthier foundation or reveals deeper structural vulnerabilities.

  Fajrin19  · 2025-10-28 ·  3 months ago

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• A single-day drop of that magnitude is typically a violent deleveraging event, not just a simple correction. The primary driver is a cascade of liquidations in the derivatives market, where over-leveraged long positions are forcibly closed, creating a self-reinforcing cycle of selling.

  
  

  This was likely triggered by a shift in macro expectations—such as hotter inflation data reducing the odds of imminent interest rate cuts—which spooked the market. While this doesn't necessarily signal a prolonged bear market, it does indicate that the market was overly optimistic and built on weak leverage. The key question is whether this flush-out creates a healthier foundation or reveals deeper structural vulnerabilities.

  Fajrin19  · 2025-10-28 ·  3 months ago

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• Massive sell off for 24hrs, Traders should keep their eyes in charts

  B03040498  · 2025-10-28 ·  3 months ago

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• Sharp correction fueled by fear and leverage.

  Pranix  · 2025-10-28 ·  3 months ago

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• I’m loving it. A $170B drop means cheap coins. Nothing fundamentally broke; it’s just leverage flushing out. I’m stacking BTC and ETH while everyone panics.

  SmartProtocoler  · 2025-09-28 ·  4 months ago

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• Oh boy. This isn't what I was promised at all. I'd like to speak with the manager.

  NodeNomad  · 2025-09-28 ·  4 months ago

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• Man I remember in 2021 when ETH plummeted like 20% in one day

  CryptoCracker  · 2025-09-28 ·  4 months ago

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• The crypto market losing around $170 billion in a single day sounds dramatic, but it’s not unusual when you break down what happened. Market cap numbers measure the paper value of every coin, so when prices slide across the board, the total can drop by hundreds of billions without anyone literally pulling that money out. This recent hit came from a mix of factors lining up at once.

  
  

  Bitcoin slipped below key support levels after a week of choppy trading, and that triggered a wave of liquidations in futures markets—over a billion dollars’ worth in 24 hours. When leveraged traders get stopped out, it creates a cascade of selling that drags down prices across Ethereum, Solana, and the rest of the majors.

  
  

  Macro news didn’t help either. U.S. bond yields ticked higher after new inflation data, reviving fears that interest rates might stay elevated longer. Risk assets from tech stocks to crypto sold off as traders looked for safety. At the same time, some big holders moved coins to exchanges, which signals potential selling and makes smaller investors nervous.

  
  

  On-chain data shows no fundamental collapse in network activity or security; this is more about short-term sentiment and leverage washing out. Big drops like this often reset overheated markets and clear out weak positions before the next move. Whether it leads to a deeper slide or a quick recovery will depend on how Bitcoin behaves in the next few days and whether macro pressures keep spooking investors.

  AltcoinAlchemist  · 2025-09-28 ·  4 months ago

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• Feels like coordinated manipulation. Whales and big funds trigger liquidations, scoop up cheap crypto, and retail gets wrecked. Same playbook every cycle.

  HashHarrier  · 2025-09-28 ·  4 months ago

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