Bitcoin faced a significant drop on Thursday, October 30, leading a correction in the broader crypto market. The price of BTC declined by 4% over the past 24 hours, hitting a low of approximately $106,861 during the mid North American trading session.
The overall crypto market cap fell by 5% in the last day, settling around $3.6 trillion. This correction hit altcoins hard, with Ethereum (ETH), Solana (SOL), Dogecoin (DOGE), Cardano (ADA), and XRP all experiencing declines.
A key factor in the market’s downturn was the heavy liquidation of long positions. Data from CoinGlass revealed that of the $1.24 billion liquidated in leveraged crypto trades, around $1.1 billion involved long positions.
Investor sentiment was also dampened by the Federal Reserve’s recent announcement. On Wednesday, the Fed reduced interest rates by 25 basis points to a range of 3.75% to 4%, as anticipated by investors. Additionally, the Fed indicated its Quantitative Easing (QE) would start on December 1, 2025, but noted that the ongoing government shutdown in Washington DC could affect this decision.
Traders are now wary of more potential market corrections in the short to mid-term.
Despite these challenges, the crypto bull market remains precarious. The end of trade tensions between the United States and China hasn’t provided much relief. For the market to avoid further declines, BTC needs to recover from its current support level around $107k. Analysis from Santiment suggests BTC often rallies when fear of a market collapse is at its peak.
