Crypto Bloodbath: Bitcoin and Ethereum Trigger Billions in Liquidations

TLDR

• Bitcoin fell below $100,000 for the first time since June, dropping to $99,075 and triggering $2.1 billion in liquidations across crypto markets
• Ethereum hit a four-month low at $3,097, down 8.6%, with long positions making up $1.63 billion of total liquidations
• U.S. crypto ETFs saw continued outflows for five straight days, with $577 million leaving Bitcoin ETFs and $219 million exiting Ethereum ETFs on Nov. 4
• Total crypto market cap dropped 4.5% to $3.47 trillion, erasing approximately $300 billion in value within hours
• High leverage and macroeconomic pressures including Federal Reserve interest rate uncertainty and U.S.-China tensions drove the market decline

Bitcoin dropped below the $100,000 mark for the first time in six months on November 5, 2025. The price fell to $99,075 before recovering slightly to around $100,870. This represents a daily decline of approximately 5%.

The total crypto market capitalization fell 4.5% to $3.47 trillion. About $300 billion in value disappeared within hours. Other major cryptocurrencies experienced similar or worse losses during the selloff.

Ethereum saw one of the steepest declines among top cryptocurrencies. The asset dropped 8.6% to $3,322, hitting a four-month low at $3,097. XRP fell 3.5% to $2.24, while BNB decreased 4.4% to $948.

The market downturn triggered massive liquidations across derivatives markets. According to CoinGlass data, total liquidations rose 88% in 24 hours, reaching $2.1 billion. Long positions accounted for $1.63 billion of these liquidations as traders betting on price increases got caught in the decline.

Open interest in crypto derivatives fell 6% to $141 billion. The average crypto market relative strength index now stands at 39. The Crypto Fear & Greed Index rose slightly to 23 but remains in “extreme fear” territory.

ETF Outflows Continue for Fifth Day

U.S.-listed crypto exchange-traded funds continued bleeding capital for a fifth consecutive trading day. Spot Bitcoin ETFs recorded $577 million in net redemptions on November 4. Spot Ethereum ETFs saw $219 million withdrawn during the same period.

These sustained outflows have reduced market liquidity and dampened investor confidence. Institutional traders who drove inflows during the summer rally have been pulling back. This withdrawal of capital has contributed to downward price pressure.

The decline reflects broader macroeconomic concerns affecting risk assets. Investors face uncertainty around the Federal Reserve’s interest rate trajectory. Stronger U.S. labor data and persistent inflation have complicated the outlook.

Capital has shifted toward U.S. Treasuries and away from high-risk markets. Rising Treasury yields and a stronger U.S. dollar have created additional headwinds. Tensions between the U.S. and China have further unsettled markets.

Leverage and Security Concerns

Excessive leverage in derivatives markets amplified the price decline. Many traders used borrowed money to bet on rising prices. When Bitcoin broke below key support levels, these positions triggered automatic liquidations.

Ethereum positions led total liquidations at $655 million. Bitcoin liquidations reached $614 million during the same timeframe. The cascade of forced selling added to downward momentum.

Security issues in decentralized finance also weighed on sentiment. The recent $128 million Balancer exploit raised concerns about DeFi infrastructure. These incidents have particularly impacted Ethereum-linked assets and DeFi tokens.

Bitcoin ended October in the red for the first time since 2018. Both whale investors and long-term holders added selling pressure during the month. Analysts are watching whether Bitcoin can maintain psychological support near $100,000.

Stock markets also declined on Tuesday, with the Nasdaq and S&P 500 finishing lower. Tech stocks took losses amid broader macroeconomic uncertainty. Trump’s ongoing trade conflicts with China have added to market anxiety.

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