Bitcoin Slides Into the Mid-$70,000s as Over $1 Billion in Liquidations Hit Crypto Traders

Bitcoin fell back toward the mid-$70,000s on 5 November, while more than $1 billion in leveraged positions were liquidated across crypto markets. The move came as US equities sold off sharply, with the tech-heavy Nasdaq entering correction territory. Ether has been trading around $2,250 in recent sessions, after a roughly 17% fall over the past month.

Bitcoin had recently been trying to hold a support zone of about $76,500 to $77,500. Its earlier recovery toward $80,000 stalled as spot bitcoin ETFs recorded outflows, including a daily exit of about $399 million on 3 November. The sell-off in ETFs followed the Binance security incident, which has been the main overhang on sentiment this month.

What happened

The largest driver was leverage. When prices move quickly, exchanges automatically close traders' leveraged positions, and those forced sales push prices lower still. Liquidations above $1 billion in one day show how much borrowed money was in the market going into the stock selloff. Reports do not establish a direct causal link between the ETF outflows, the Binance incident and the 5 November price drop, so it is best read as several pressures arriving together.

The Binance incident is still shaping flows. Reporting from The Block says the FBI has attributed the roughly $6.3 billion drain from Binance's hot wallets on 29 October to North Korean hackers. Binance says about 98% of the affected token assets have been replenished, and about $2.85 billion was frozen or intercepted. Customers have still withdrawn a net amount of around $4.7 billion since the exchange reopened, according to CoinDesk.

Why it matters for traders

• Leverage amplifies every move. A market that falls 3–5% in a day can trigger a chain of liquidations. Traders using high leverage should assume that stops may not fill at the expected price.
• ETF flows are a signal, not a trigger. Steady outflows point to institutional caution, but daily flows can flip quickly. One session does not define a trend.
• Exchange risk is real. The Binance episode shows that counterparty risk, meaning the risk that the platform itself fails, is not theoretical. Spreading holdings and understanding where funds are stored are basic risk controls.
• Crypto is trading as a risk asset. It is falling alongside US tech stocks, so diversification within a portfolio does not protect against a broad risk-off move.

What to watch

• Whether bitcoin holds the $76,000–$77,500 zone, and whether it can reclaim $80,000.
• Daily spot ETF flows, which show whether institutional selling is slowing.
• Binance withdrawal data and any further official updates on the hack investigation.

Educational content, not investment advice. Practise crypto position sizing and stop-loss rules risk-free in the Trading Titans paper trading app.