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Crypto Market Suffers $19 B in Liquidations: Is the Correction Over or Just Starting?

Web3Pioneer  · 2025-11-04 ·  2 months ago
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Over $19 billion in crypto trader liquidations hit major tokens like Bitcoin, Ethereum and Solana recently—does this shake‑out clear the way for stable growth, or does it warn of deeper fragility in the market?

5 Answer

  • The recent wave of liquidations in crypto—estimated at around $19 billion in 24 hours—marks one of the most intense single‑day wipes in market history. Such a sharp correction isn’t just painful—it often forces the market to reset.


    When traders get flushed out en masse, especially leveraged ones, we frequently see a reduction of “weak hands” and a clearer base for future moves. That can set the stage for healthier growth if the underlying fundamentals hold. But it’s not automatically a positive signal. Instead, it highlights how vulnerable the market is to external triggers—whether macro‑financial shocks, regulatory news, or sentiment swings.


    In this case, the fact that Bitcoin, Ethereum and Solana were hit hard suggests that the market’s broad exposure to risk is still high. If major tokens can’t handle turbulence then, smaller or newer ones could be at greater risk. That means investors and speculators alike should watch volume, on‑chain flows, and whether funding rates stay elevated.


    So is it a “good” shake‑out or a warning? My take: right now it’s more of a warning. We’ve cleared some excess, but unless we see rebuilding—capital coming in, volatility reducing, stronger fundamentals—it’s too soon to call it the start of a sustained up‑leg. The next few weeks and how quickly the market recovers will tell us whether this event is the end of the storm or the calm before another wave.

  • Exactly what we needed. Purge the excess leverage, then gear up for the next leg. Bring on the accumulation phase.

  • Massive liquidations? More like proof the market’s still unstable. Until that changes, this isn’t a bounce—it’s just relief.

  • Ok, we got the reset. Now we watch for follow‑through—fund flows, sentiment, structure. Without that this could drag on.

  • Nice sell‑off = opportunity. But you better wait for cheap entries, tight risk control, and confirmation before doubling down.

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