The cryptocurrency sector experienced a widespread downturn on November 3, 2025, as
Bitcoin
and
Ethereum
both slid by more than 4%, resulting in liquidations exceeding $400 million and heightening worries over macroeconomic challenges, as reported by
a Coinpedia report
. This decline was attributed to a combination of the U.S. Federal Reserve’s hawkish approach, persistent outflows from Bitcoin exchange-traded funds (ETFs), and increased volatility among alternative cryptocurrencies.
The Federal Reserve’s reluctance to cut rates was a major factor. Following a 25-basis-point reduction in October, Fed Chair Jerome Powell indicated that another cut in December was not assured, which strengthened the U.S. dollar and reduced risk appetite, according to Coinpedia. The CME FedWatch Tool mirrored this sentiment, showing the likelihood of a December rate cut dropping to 69.3% from previous higher levels, the report stated. Treasury Secretary Scott Bessent also highlighted policy limitations, cautioning that tight monetary policy had already slowed some sectors of the economy, Coinpedia added.
Outflows from Bitcoin ETFs further fueled the decline, with $1.15 billion withdrawn in just the previous week, Coinpedia reported. Leading asset managers such as
BlackRock
, ARK Invest, and Fidelity experienced notable redemptions, signaling a pullback by institutional players, the report noted. The sell-off intensified as Bitcoin’s price dropped below $107,500, causing nearly $400 million in long positions to be liquidated. Analysts cautioned that if Bitcoin fell under $106,000, it could trigger an additional $6 billion in liquidations, worsening the slump.
Alternative cryptocurrencies performed even worse, with the top 50 tokens losing almost 4% in a single day, Coinpedia reported. Ethereum declined 4.4% to $3,734, while
XRP
and
BNB
dropped by 3.38% and 4.8%, respectively. Bitcoin’s share of the market rose to 60.15% as investors sought safer assets. The broader sell-off also reflected wider market anxieties tied to U.S.-China trade issues and global economic instability, according to
a Yahoo Finance analysis
, though the Yahoo report noted that recent diplomatic progress between the two countries had briefly steadied prices earlier in October.
Investor sentiment stayed negative, with the Crypto Fear and Greed Index remaining in the "fear" range at 35, as reported by
an Economic Times report
. Long-term investors contributed to the downward momentum by selling over 100,000 BTC during October, the Economic Times noted. Additionally, the negative premium on Coinbase—a key indicator of U.S. retail demand—pointed to weak buying interest, the report said.
Despite the ongoing volatility, some market experts continued to express confidence in Bitcoin’s future prospects. Tom Lee from FundStrat Capital maintained his year-end forecast of $200,000 for Bitcoin and $7,000 for Ethereum, according to
CoinDesk
, though he emphasized that a period of consolidation would be necessary before any significant rally.
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