The global cryptocurrency market saw a sharp sell-off on November 3, with total capitalization falling by more than 4% to $3.54 trillion.
The downturn wiped billions from major assets, signaling a renewed wave of volatility after weeks of relative stability.
Bitcoin dropped below $107,000, shedding nearly 4% over the last 24 hours, while Ethereum slipped to $3,621 after losing more than 6%. Other leading assets, including Solana, XRP, and BNB, posted even deeper declines, with losses ranging between 6% and 9%.
$1.13 Billion in Liquidations Hit the Market
According to Coinglass data, the market downturn triggered more than $1.13 billion in liquidations within a single day, impacting nearly 300,000 traders. A staggering $1.05 billion came from long positions, underscoring the extent of overleveraged bullish sentiment.
Bitcoin accounted for $296 million of the total, followed by Ethereum at $266 million and Solana at $143 million. Smaller altcoins like XRP and Dogecoin also saw tens of millions in liquidations. The largest single liquidation order took place on HTX’s BTC-USDT pair, valued at $33.95 million, highlighting the severity of the correction.
$600M longs liquidated in<1h https://t.co/gc8vY67SVc pic.twitter.com/nGdRqH6loY
— ?????? (@nobrainflip) November 3, 2025
Fed Comments and Macroeconomic Headwinds
Analysts attribute the market’s decline to a combination of macroeconomic and technical factors. Recent remarks from Federal Reserve officials reinforced a hawkish stance on interest rates, dampening expectations for near-term rate cuts. Higher rates generally make traditional yield-bearing investments more appealing than speculative assets like cryptocurrencies, prompting capital outflows from the digital asset space.
“The Fed’s position continues to signal restrictive policy well into next year,” one analyst noted. “That creates a tough environment for risk assets—especially those that depend on liquidity, like Bitcoin.”
Lack of Fresh Catalysts Fuels Profit-Taking
With no major bullish news or catalysts on the horizon, traders appear to have taken profits following last week’s modest gains. The absence of institutional buying momentum, combined with aggressive liquidations of leveraged positions, accelerated the price slide.
Data also shows declining open interest across futures markets, suggesting traders are scaling back exposure amid growing uncertainty.
ETF Outflows Add to Selling Pressure
Spot Bitcoin exchange-traded funds (ETFs), which had previously been a source of steady inflows, saw significant outflows this week. BlackRock’s IBIT fund, the largest of its kind, recorded $149 million in outflows, while Grayscale’s GBTC saw modest inflows that were not enough to offset the broader exodus.
Overall, the total net asset value of all Bitcoin ETFs now stands at around $147.7 billion, representing roughly 6.77% of Bitcoin’s total market capitalization. Analysts say these outflows reflect reduced institutional participation and waning short-term confidence.
Broader Economic Concerns Emerge
Beyond crypto-specific catalysts, wider macroeconomic concerns also weighed on sentiment. Ongoing debates around U.S. fiscal policy, the risk of a prolonged government shutdown, and global recession fears have combined to spook investors. Many traders are choosing to de-risk portfolios ahead of potential turbulence in the final quarter of 2025.
This sentiment shift is evident in the “Fear” reading across major crypto market indices, marking a stark reversal from the mild optimism seen earlier in October.
Outlook: Volatility Ahead
Despite the sell-off, some analysts view the correction as a healthy reset after months of overextension. Bitcoin remains above the psychological $100,000 level, a zone many traders consider strong long-term support.
Still, the path forward appears uncertain. Until macroeconomic conditions stabilize and ETF inflows resume, the crypto market is likely to remain under pressure. Market observers expect volatility to persist, with potential rebounds hinging on fresh institutional interest or dovish signals from the Federal Reserve.
