$1.3 Billion Wiped Out: Bitcoin Crashes Below $105K as Fed Fear Hits Crypto Market

Bitcoin took another big hit this week, dropping below $105,000 after a massive $1.3 billion liquidation wave shook the crypto market.

According to data from CoinGlass, over $1.27 billion in leveraged futures positions were wiped out in just 24 hours — most of them were long trades. This means many traders who expected prices to rise were forced to close their positions at a loss.

The sell-off started as investors became nervous about the U.S. Federal Reserve’s next move on interest rates. Fed officials sent mixed signals — some hinted that inflation is cooling too slowly, while others said it’s too early to commit to more rate cuts. This confusion pushed traders to reduce risk, strengthening the U.S. dollar and hurting Bitcoin’s price even more.

Bitcoin is now down about 3% for the day and has dropped nearly 4% this week, reaching its lowest point since mid-October.

Altcoins followed the same path —

• Ethereum (ETH) fell 6% to $3,497

• XRP dropped 5.5% to $2.28

• Solana (SOL) plunged around 10%

• Cardano (ADA) lost 5.5%, and Polygon (MATIC) slipped 7.6%

• Even Dogecoin (DOGE) was down by 5%

However, not all news was negative. Shares of Cipher Mining (NASDAQ: CIFR) jumped more than 20% after announcing a $5.5 billion deal with Amazon Web Services (AWS). The 15-year agreement will provide 300 megawatts of power for AI infrastructure — showing the company’s shift from crypto mining to the fast-growing AI computing sector.

This latest crash shows how sensitive the crypto market remains to global economic news and investor sentiment. As traders look ahead, all eyes are now on the Federal Reserve’s December meeting — which could set the tone for Bitcoin’s next big move.

By Md Golam Rabbani