Why Is Crypto Down Today? – November 5, 2025

The conservative loan represents just 3% of Metaplanet’s $3.5 billion Bitcoin reserve, maintaining substantial collateral buffers even during potential market crashes.

Bitcoin Drops Under $100K as US Shutdown, Fed Uncertainty Weigh on Markets

Bitcoin fell to a five-month low below $100,000 on Wednesday, as traders reacted to the prolonged US government shutdown and renewed concerns about slowing economic growth.

Ether led the decline, tumbling over 12% to $3,179, while total crypto liquidations topped $2.09 billion in 24 hours, mostly from long positions.

Analysts said that the drop was driven less by leveraged futures and more from spot investors pulling away amid waning confidence after Fed Chairman Jerome Powell signaled that a December rate cut is not guaranteed.

The broader crypto market tumbled alongside global equities, with total market capitalization down 4.8% to $3.45 trillion and Bitcoin’s dominance rising above 60%, reflecting investors’ flight to relative safety.

Analysts have warned that altcoins could fall another 30% against Bitcoin as liquidity dwindles and speculative appetite fades.

Meanwhile, US stock indexes, including the S&P 500 and the Nasdaq, posted their biggest one-day drop since early October, led by weakness in technology and renewed warnings from major banks about bubble risks linked to the AI ​​boom.

Macro pressures deepened as the US government shutdown stretched to 36 days, freezing key economic data and leaving investors dependent on private indicators for guidance.

Combined with Trump’s renewed trade threats against China and doubts about future Fed rate cuts, risk sentiment has worsened in global markets.

However, analysts such as Bitget’s Ryan Lee said that Bitcoin could bounce back towards $115,000-$120,000 if macro conditions stabilize, although geopolitical risks and inflation remain key downside threats.

Levels and Events to Watch Next

At the time of writing, Bitcoin is trading around $101,992, up 0.52% on the day after barely below the key $100,000 mark earlier in the week.

The asset is trying to stabilize near the lower boundary of its recent range, with sentiment still fragile after a strong selloff.

BTC is currently oscillating between $101,000 and $104,000, suggesting a short-term consolidation following heavy liquidations.

A break above $104,500 could pave the way for recovery towards $107,000 and $110,000, while failure to hold the $101,000 level may expose the market to a further rally towards $98,500-$97,000, an area closely watched by traders for potential rebounds.

Meanwhile, Ethereum is trading near $3,319, up 1.02% on the day, recovering a bit after Monday’s sharp drop that sent prices to their lowest level since July.

ETH faces immediate resistance near $3,400-$3,500, where selling pressure remains strong. A sustained push above $3,550 could signal a short-term reversal towards $3,750-$3,900, while a drop below $3,250 risks triggering a deeper correction towards the $3,000-$2,950 region.

Meanwhile, market sentiment deteriorated further, with the Crypto Fear and Greed Index goes down at 20, signaling a deep “Fear”.

The index was 27 yesterday, 39 last week, and 58 a month ago, which shows a constant slide from the neutral territory in the fear as the wider sale of the market accelerates. The current reading marks one of the lowest sentiment levels since early 2024, highlighting how investors have shifted from optimism to caution.

Spot Bitcoin exchange-traded funds (ETFs) saw a significant outflow of $577.7 million on November 4, indicating intensified selling pressure in institutional Bitcoin products, according to data from SoSoValue.

The total cumulative net outflow for all US spot Bitcoin ETFs now stands at $60.42 billion, while total net assets amount to $134.53 billion, representing 6.69% of Bitcoin’s market capitalization. Total daily trading volume reached $8.94 billion, showing active institutional participation despite bearish market sentiment.

Among individual issuers, Fidelity’s FBTC led the flows with $356.6 million, followed by Grayscale’s GBTC at $48.9 million and Ark & 21Shares’ ARKB at $128.1 million. BlackRock’s IBIT reported no inflows or outflows for the day, but remains the leader of the sector with $80.2 billion in net assets, followed by Fidelity’s $20.2 billion and Grayscale’s $17.2 billion.

Spot Ethereum ETFs also recorded $219.37 million in flows on the day. Among the nine listed funds, BlackRock’s ETHA led redemptions with $111.08 million in outflows, followed by Grayscale’s ETHE at $19.78 million, Fidelity’s FETH at $19.86 million, and Grayscale’s ETH at $68.64 million.

Total cumulative net inflows for US spot Ethereum ETFs now stand at $14.01 billion, while total net assets have fallen to $21.12 billion, representing 5.45% of Ethereum’s market capitalization. Daily trading volume reached $4.15 billion, underscoring high turnover even as institutional sentiment cooled.

The Solana Spot ETF continued to attract investor interest, recording $14.83 million in net inflows on November 4. Between the two listed products, Bitwise’s BSOL dominated with $13.16 million in flows, while Grayscale’s GSOL added $1.67 million.

Total net cumulative outflow now stands at $284.09 million, while total net assets have reached $488.80 million, representing 0.58% of Solana’s market capitalization. Total daily trading volume came in at $68.53 million, reflecting steady engagement despite broader market weakness.

Meanwhile, Zei Zorani Mamdani was elected as the next mayor of New York Citywhich marks a historic moment for the city and a remarkable victory for the crypto prediction markets that once called the outcome with impressive accuracy.

Data from Polymarket, the blockchain-based prediction platform, showed that 92% of traders bet on a Mamdani victory before election dayincluding a $1 million position that pushes implied probability close to certainty.