A single Bitcoin trader suffered a loss of 201 BTC, valued at approximately $15.6 million, after a rapid series of eight forced liquidations during the November 5 market downturn. The event unfolded as a sharp Wall Street selloff coincided with steep declines in major cryptocurrencies, leading to widespread liquidations across the sector.
Broad Liquidation Wave Hits Crypto Markets
BeInCrypto, a digital asset news platform, cited CoinGlass data showing that more than 209,000 traders experienced forced liquidations within 24 hours. The total value of these liquidations reached $1.08 billion, with the majority—$956 million—originating from long positions and $130.78 million from short positions. Among individual assets, Bitcoin accounted for $282.37 million in liquidations, while Ethereum recorded $173.75 million. Binance was the leading platform, handling 44.3% of these liquidations.
BeInCrypto reported that 201 BTC—worth $15.6 million—were lost by the unnamed trader across eight liquidations, illustrating the significant risks that leverage introduces during volatile market conditions.
Lookonchain, a blockchain analytics service, later observed another forced liquidation involving the same trader. After the Bitcoin positions were closed, the trader reportedly opened a short on the TRUMP token—totaling 2.25 million tokens valued at $2.68 million—but this position was also entirely liquidated soon after.
Mini dictionary: Lookonchain is an on-chain data analytics platform that tracks crypto transactions and addresses in real time, providing transparency about market movements.
The investor’s identity, platform used for the trades, and details about leverage or margin settings were not made public in available reports.
Wall Street Selloff and Crypto Fallout
On November 5, US equities fell sharply. The S&P 500 dropped 4.4%, the Nasdaq Composite lost 5.5%, and the Dow Jones declined more than 1,800 points. AI data center stocks led these losses, with the Nasdaq surrendering over $2.5 trillion in market capitalization during October, per Associated Press and Reuters.
This turmoil impacted crypto markets as well. According to available CoinGecko data at 06:13 UTC on November 6, the price of Bitcoin stood at $75,409, marking a 6.25% drop over 24 hours. Ethereum traded at $2,216.92 with an 8.51% decline, and Solana fell to $89.11 with a 7.12% loss.
| Asset | Price | 24-hour change |
|---|---|---|
| Bitcoin (BTC) | $75,409 | -6.25% |
| Ethereum (ETH) | $2,216.92 | -8.51% |
| Solana (SOL) | $89.11 | -7.12% |
CoinDesk reported more than $1 billion in liquidations of crypto derivatives, mainly affecting bullish traders. Joshua Lim, head of derivatives at FalconX, told CoinDesk that the wave of selling returned as investors reconsidered prospects for data center construction. Jasper De Maere of Wintermute noted that crypto markets managed relatively well amid broader turmoil in AI-related stocks, describing the medium-term outlook as “glass half full.”
Jasper De Maere of Wintermute noted that, despite the sharp drop, crypto assets had weathered the volatility in AI-linked equities relatively well, with no immediate reversal in sight.
Sentiment indicators diverged during the session. A Fear & Greed Index was cited at neutral (score 50) by BeInCrypto, while a separate reading from Alternative.me showed a score of 28, classified as fear, reflecting heightened uncertainty in the market.
Risks of Leverage and Unanswered Questions
The case illustrates the heightened risks involved in trading with leverage during turbulent markets. Exchanges implement liquidations automatically when a trader’s margin becomes insufficient to cover losses, especially during rapid price swings. However, specifics regarding the Bitcoin trader’s account, such as margin balance or entry prices, remain unclear.
Analyst Michaël van de Poppe commented to BeInCrypto that his broader outlook for Bitcoin was unchanged, pointing to $75,000 as a notable level for potential long positions, though he cautioned this was his personal view rather than a guaranteed support level. The full mechanics driving the eight closures and the scale of exposure involved remain undisclosed.
While both equity and crypto markets declined sharply, the reports did not draw a direct connection between the two—stating that falling equities alone cannot account for every forced sale in digital assets. Market participants continue to evaluate the relationship between these sectors amid ongoing uncertainty.
