According to Woofun AI, the cryptocurrency market experienced a sharp shock on November 5. The Bitcoin price broke through the $76,000 key support level, causing the total market capitalization to shrink by $140 billion in just 4 hours. This retracement erased previous gains above $80,000 and quickly evolved into a wave of large-scale liquidations on exchanges. The core of market pressure stems from the resonance of multiple macroeconomic factors: the sudden decline in US technology stocks, deepening concerns about the Federal Reserve's monetary policy, and regulatory policy uncertainty that may be brought about by the midterm election results have all increased selling pressure, causing Bitcoin to drop to about $75,900 at one point.
According to data compiled by Woofun AI, leveraged positions in the derivatives market have become the main victims of this fluctuation. Over the past 24 hours, leveraged positions totaling $1.05 billion were forcibly closed, affecting 203,418 traders.
Structurally, the bulls have borne the vast majority of losses. More than $9268.1 million of orders were liquidated, accounting for 88%; in contrast, the amount of empty orders settled was only US$126.6 million, accounting for 12%. During the four-hour window with the most intense selling pressure, the liquidation scale reached US$8724.8 million, of which multiple orders accounted for nearly 90% (US$793 million) and empty orders of only US$79.48 million. In the last hour, another $228.9 million of positions were liquidated, and losses of multiple orders amounted to US$196.52 million. The single largest liquidation occurred on the Binance platform, and multiple ETH/USDT orders were triggered at a price of $2,243.86, involving approximately $10.94 million.
A deeper driver is the strengthening of the correlation between crypto assets and traditional technology stocks. As investors are re-evaluating the profit prospects of large investments in the field of artificial intelligence, the Nasdaq Composite Index showed a correction on Thursday, and semiconductor and AI concept stocks such as Nvidia (NVDA.US), AMD (AMD.US), and Qualcomm (QCOM.US) fell sharply. The latest Bitfinex Alpha report indicates that the 30-day correlation between Bitcoin and the Nasdaq 100 Index has climbed to 0.68, showing a strong linkage effect.
Meanwhile, the industry is still digesting the aftermath of the Binance security breach at the end of October, when around $6.3 billion in assets were stolen, and this risk exposure further weakened market confidence. If Bitcoin fails to stabilize its current support zone, compounded by the continued weakness of US stocks, the selling pressure is likely to escalate further.