Four-Hour Selloff Cuts Crypto Market Value by $140 Billion

The global crypto market lost $140 billion in roughly four hours Thursday, Nov. 5, reducing its total capitalization to about $2.53 trillion in a sharp contraction that underscored the market’s exposure to fast-moving selloffs.

Two declines of similar size occurred within the past year. A $140 billion drop on Dec. 16, 2025, left total crypto capitalization at $3.02 trillion, while another on June 3, 2026, took it to $2.37 trillion.

Each prior episode brought more than $1.6 billion in liquidations. Long positions, or bets on rising prices, accounted for as much as 89% of the positions wiped out.

Leverage allows derivatives traders to borrow to enlarge their bets. If prices fall far enough, exchanges automatically close positions to cover the borrowed funds. Those forced sales can add downward pressure and trigger more liquidations, accelerating a decline.

At roughly $2.53 trillion, the market is above the June 3 low, but Thursday’s four-hour loss continues a pattern of steep and rapid market-wide drawdowns.