$170 Billion Vanishes from Crypto Market in 24 Hours – What’s Driving the Massive Sell-Off?

23 Answer

• Likely due to a "risk-off" sentiment from high inflation/rising interest rates, causing leveraged positions to be liquidated. It signals a sharp correction unless a major crypto project (like a stablecoin) fails, which could trigger a deeper crash.

  agnesss  · 2025-10-28 ·  2 months ago

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• A single-day drop of that magnitude is typically a violent deleveraging event, not just a simple correction. The primary driver is a cascade of liquidations in the derivatives market, where over-leveraged long positions are forcibly closed, creating a self-reinforcing cycle of selling.

  
  

  This was likely triggered by a shift in macro expectations—such as hotter inflation data reducing the odds of imminent interest rate cuts—which spooked the market. While this doesn't necessarily signal a prolonged bear market, it does indicate that the market was overly optimistic and built on weak leverage. The key question is whether this flush-out creates a healthier foundation or reveals deeper structural vulnerabilities.

  Fajrin19  · 2025-10-28 ·  2 months ago

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• A single-day drop of that magnitude is typically a violent deleveraging event, not just a simple correction. The primary driver is a cascade of liquidations in the derivatives market, where over-leveraged long positions are forcibly closed, creating a self-reinforcing cycle of selling.

  
  

  This was likely triggered by a shift in macro expectations—such as hotter inflation data reducing the odds of imminent interest rate cuts—which spooked the market. While this doesn't necessarily signal a prolonged bear market, it does indicate that the market was overly optimistic and built on weak leverage. The key question is whether this flush-out creates a healthier foundation or reveals deeper structural vulnerabilities.

  Fajrin19  · 2025-10-28 ·  2 months ago

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• Massive sell off for 24hrs, Traders should keep their eyes in charts

  B03040498  · 2025-10-28 ·  2 months ago

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• Sharp correction fueled by fear and leverage.

  Pranix  · 2025-10-28 ·  2 months ago

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• This isn’t just a correction—it’s the start of the next crypto winter. Rates are staying high, regulations are tightening, and retail hype is dead. Expect more pain before any real recovery.

  CrossChainRider  · 2025-09-28 ·  3 months ago

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• They got my $100. 😭

  Web3Trailblazer  · 2025-09-28 ·  3 months ago

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• I’m loving it. A $170B drop means cheap coins. Nothing fundamentally broke; it’s just leverage flushing out. I’m stacking BTC and ETH while everyone panics.

  SmartProtocoler  · 2025-09-28 ·  3 months ago

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• Blame the Fed. Higher bond yields and stubborn inflation scared risk traders across stocks and crypto. Until interest rates come down, big pumps will be short-lived.

  CryptoNinja  · 2025-09-28 ·  3 months ago

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• Feels like coordinated manipulation. Whales and big funds trigger liquidations, scoop up cheap crypto, and retail gets wrecked. Same playbook every cycle.

  HashHarrier  · 2025-09-28 ·  3 months ago

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