Bitcoin suddenly plunged on Tuesday, dropping from around $105,000 and falling 2.4% to $104,956. This drop directly triggered a wave of leveraged position liquidations—$1.27 billion in futures positions were liquidated within 24 hours, marking the most intense liquidation in recent weeks.

Most liquidations were long positions. The market is concerned that the Federal Reserve may hint at no rate cuts this year, causing risk appetite to reverse sharply. The strengthening US dollar and rising Treasury yields are putting double pressure on BTC.

Market sentiment has also collapsed. The Fear & Greed Index dropped from 42 to 21, hitting a new seven-month low. The last time sentiment was this fearful was in April.

Altcoins followed suit across the board: ETH fell 6% to $3,497, SOL plummeted 10.1%, XRP dropped 5.5%, and DOGE fell 5%. Institutional funds are also retreating—ETFs saw a net outflow of $800 million last week, with institutional buying falling below daily miner production for the first time.

Ironically, November has historically been the strongest month for BTC, with an average gain of over 42%. But with such a rough start, it looks like that pattern may be broken this year.