The cryptocurrency market experienced one of its worst days in recent months, as strong selling pressure led to sharp declines across several altcoins. While Bitcoin (BTC) prices remained relatively stable, tokens like XRP, Dogecoin (DOGE), and Cardano’s ADA dropped as much as 15% within 24 hours. Other altcoins, including Ether (ETH) and Solana (SOL), also saw declines ranging from 7% to 17%, with the overall market capitalization plunging by 6.5%—the largest drop since October this year.
No immediate catalyst was identified, but the sell-off coincided with concerns over the potential impact of Google’s newly unveiled quantum computing chip, Willow, on cryptocurrency security. This announcement has added significant market anxiety, especially following the strong altcoin rally earlier in November.
Another critical factor was the surge in liquidations of leveraged positions. According to CoinGlass, over $1.5 billion worth of long positions were liquidated, marking the highest figure since 2021. Notably, futures contracts tied to Dogecoin and XRP recorded losses of $70 million each, while the “Other Altcoins” category saw $560 million wiped out.
The selling pressure primarily stemmed from large trades on Coinbase, highlighting the over-leveraged state of the market. A prominent quantitative trader noted, “We witnessed a series of massive sell orders that drove prices down by over 5% in a short time. This is highly unusual and could indicate a major investor being forced to liquidate their holdings.”
Large-scale liquidations like these are often seen as signs of extreme market behavior. They can signal a potential market reversal as sentiment adjusts from overreaction. However, in the short term, the market remains under downward pressure, particularly as investors continue to unwind risky positions.
The cryptocurrency market is at a critical juncture, and adapting investment strategies to navigate these volatile conditions is more important than ever.
