Crypto liquidations pass $870m as Bitcoin and altcoins plunge

More than $870 million in margin trades were wiped out in four hours as Bitcoin fell nearly 6 percent and Ethereum dropped over 7 percent.

By Divyansh Mishra, YourKhabri DeskNov 5, 2026, 04:09 PM UTC1 min readliquidationsbitcoinethereumderivatives

Key takeaways

1Over $870 million in crypto margin positions were liquidated within four hours on 5 November 2026.
2Watcher Guru reported four-hour drops of 5.85% for Bitcoin, 7.45% for Ethereum, 6.20% for Solana and 4.95% for XRP.
3The market drop follows an earlier decline below $77,000 on the same day that wiped out $400 million in long positions.

More than $870 million in crypto trading positions funded by borrowed capital were liquidated in a four-hour window on 5 November 2026 as prices dropped sharply, Watcher Guru reported. The sudden market slide triggered a wave of automated closures across major cryptocurrency exchanges.

During the four-hour period, Bitcoin dropped 5.85 percent and Ethereum fell 7.45 percent, Watcher Guru reported. Solana declined 6.20 percent while XRP lost 4.95 percent, as forced selling rapidly expanded from the largest cryptocurrency into major alternative digital assets.

The mass closure of derivative positions follows an initial drop below $77,000 earlier on 5 November that hit $400 million in long positions, according to earlier reporting by YourKhabri. Liquidations occur when trading platforms automatically close positions after traders fail to meet margin requirements. Before the recent fall, Bitcoin traded at $79,337 with a market capitalisation of $1.595 trillion, according to YourKhabri data, while Ethereum held a market valuation of $279.5 billion.

Sharp price drops reduce open interest in perpetual futures contracts and remove high-risk debt from derivative markets. Traders will monitor whether spot demand emerges near current levels to absorb the forced selling or if further price weakness triggers secondary margin calls across trading desks.

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Reported and edited by the YourKhabri desk under our editorial policy. Nothing here is investment advice.