The cryptocurrency market is once again in the red, with a total market capitalization down by nearly 3% as of November 3, 2025. Bitcoin, Ethereum, and major altcoins experienced over 10% declines, resulting in more than $400 million in liquidations within 24 hours.
But what’s really driving this sudden downturn?
Fed Official Hints at No Further Rate Cut
One of the main reasons behind today’s drop is renewed caution from the U.S. Federal Reserve. After cutting rates by 25 basis points in October, Powell said another cut in December isn’t “a foregone conclusion,” boosting the U.S. dollar and cooling investor sentiment.
Even Treasury Secretary Scott Bessent also warned that tight policies have already slowed parts of the economy, leaving limited room for more cuts ahead.
Even the FedWatch Tool now shows the probability of another rate cut has fallen to 69.3%, reflecting growing doubts about further policy easing.
Bitcoin ETFs See Billions in Outflows
Adding to the pressure, Bitcoin ETFs continue to see heavy outflows. Recent data from Fairside shows that U.S. spot Bitcoin ETFs recorded $1.15 billion in withdrawals last week alone.
The largest outflows came from funds managed by BlackRock, ARK Invest, and Fidelity, suggesting investors are pulling back from Bitcoin-linked financial products.
Long Liquidations Deepen the Sell-Off
The fall of Bitcoin below $107,500 triggered a chain reaction of long liquidations worth nearly $400 million, with over 162,000 traders wiped out in a day. Bitcoin alone saw $74.6 million in long positions liquidated, while Ethereum accounted for $85.6 million.
This rapid liquidation has intensified the downward momentum, and now analysts warn that if BTC breaks below $106,000, another wave of $6 billion in liquidations could follow.
Altcoins Hit Harder Than Bitcoin
Altcoins suffered even steeper losses, with the top 50 tokens falling nearly 4% in a single day. Bitcoin’s dominance climbed to 60.15%, showing that traders are shifting toward safer assets.
Meanwhile, Ethereum dropped 4.4% to $3,734, XRP fell 3.38%, and BNB slipped 4.8% to $1,039. However, Uniswap and Dogecoin were among the worst performers, losing 9% and 6.9% respectively.
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