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The crypto market has entered one of its steepest sell-offs in months, erasing over $90 billion in market value within just one hour and triggering more than $1.3 billion in liquidations as leveraged positions were wiped out across exchanges. Related Reading: Rare Chart Formation That Led To An 87% XRP Price Crash Has Resurfaced Bitcoin (BTC) plummeted below $105,000, extending a sharp correction that began late last week, while major altcoins such as Ethereum (ETH), Solana (SOL), and XRP followed suit with double-digit losses. BTC's price trends to the downside on the daily chart. Source: BTCUSD on Tradingview Fed's Hawkish Stance Sparks Risk-Off Panic The latest crash stems largely from renewed Federal Reserve hawkishness that reignited fears across global risk markets. Despite cutting rates by 25 basis points in October, Fed Chair Jerome Powell signaled that further rate cuts are not guaranteed, stressing that inflation remains "on the wrong path." His remarks strengthened the U.S. dollar and sent shockwaves through speculative assets, including cryptocurrencies. Adding to the pressure, the U.S. Dollar Index (DXY) surged to over 100, its highest level since August. Analysts noted that the move triggered technical selling as Bitcoin lost its critical $110,000 and $106,000 support zones. Institutional investors began offloading positions through U.S. spot Bitcoin ETFs, amplifying the downtrend. Mass Liquidations Wipe Out Over 300,000 Traders According to data from CoinGlass, total liquidations exceeded $1.37 billion in 24 hours, with long positions accounting for nearly 90% of the total. Bitcoin led the way with over $396 million in liquidated assets, followed closely by Ethereum at $368 million. The largest single liquidation event occurred on HTX Exchange, where a $47.8 million BTC-USDT long position was closed out. The Crypto Fear and Greed Index has fallen to 21, deep in "Extreme Fear" territory. More than 327,000 traders have been wiped out in the past day, a figure reminiscent of the October 11 flash crash, when 1.6 million traders faced similar losses. Altcoins Bear the Brunt as Market Cap Sinks Altcoins faced heavier losses than Bitcoin amid thin liquidity and cascading sell orders. Solana (SOL) dropped below $160, down 8%, while Ethereum slipped 5% to $3,500. XRP and Cardano (ADA) also tumbled over 5.5%. The total crypto market cap has shrunk below $3.5 trillion, its lowest level since July. Related Reading: From Greed To Terror: Bitcoin's Fall Below $104K Sparks Extreme Fear Market analysts see the correction as a "healthy reset" after months of aggressive rallies. However, if Bitcoin breaks below the $100,000 psychological support, experts warn of an additional 5-8% downside across the broader market. For now, traders are bracing for heightened volatility as the crypto storm intensifies. Cover image from ChatGPT, BTCUSD chart from Tradingview