Crypto Compass by BitcoinWalletSG #142

Liquidation wave rattles crypto as 400m dollars is liquidated? Read it in our weekly newsletter now!

Author

BitcoinWallet SG
November 04, 2025

Hello Fam,

Markets just saw another sharp liquidation wave, coming only a few weeks after the heavy wipe out on 10 October. These back-to-back shakeouts show that leverage in the system is still high and sentiment can turn quickly.

It is a good time to stay patient and cautious instead of chasing short term moves. We have personally reduced our trading activity over the past month and focused more on protecting capital while waiting for clearer signals. In periods like this, discipline matters more than excitement.

Liquidation wave rattles crypto as 400m dollars is liquidated

Around 400 million dollars in leveraged crypto positions were liquidated as Bitcoin and Ethereum pulled back this week. The selloff followed cautious comments from the Federal Reserve and a stronger US dollar, which pushed traders to unwind risk. Once key price levels broke, forced liquidations accelerated the move. This event is a reminder that leverage adds significant risk in volatile markets.

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Withdrawals paused. What is your plan B? Make it Plan A. Self custody with a hardware wallet now! #tokenizexchange #Bitcoin #Crypto

Wintermute founder says no lawsuit against Binance

Wintermute’s CEO Evgeny Gaevoy has dismissed rumours that the firm plans to sue Binance in the fallout from the October liquidation event, stating unequivocally that “we never had plans to sue Binance and see no reason to do so in the future.”

ETF traders dump 800 million dollars in Bitcoin shares

Bitcoin ETF holders have sold roughly 800 million dollars worth of shares in a sharp risk-off move, adding pressure to the market and driving prices lower. Some analysts see this flush as a sign that a local bottom could be forming, since heavy ETF outflows often occur near capitulation points.

Hong Kong to open crypto order books to global liquidity pools

Hong Kong’s crypto regulator is allowing locally-licensed virtual asset trading platforms to share their order books with overseas affiliates, enabling them to tap global liquidity rather than being ring-fenced locally. This marks a big step in the city’s bid to become a major digital-asset hub and could improve price discovery, lower spreads and draw more international trading activity into the region.

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