Crypto prices today showed a sharp downturn as high leverage and sustained exchange-traded fund outflows accelerated a sell-off across major assets. Summary Bitcoin fell below $100,000 as $2B in liquidations hit the market. ETF outflows and macro pressures kept sentiment weak. November has historically brought rebounds, but traders remain cautious. As of Nov. 5, the total crypto market cap has fallen 4.5% to $3.47 trillion, erasing roughly $300 billion in value within hours. Bitcoin dropped below the $100,000 threshold for the first time since late June, briefly reaching $99,075 before stabilizing near $100,870, a daily decline of about 5%. Ethereum saw a deeper pullback, falling 8.6% to $3,322. XRP slid to 3.5% $2.24 and BNB dropped 4.4% to $948. Increased leverage in the derivatives markets contributed to the downturn. According to CoinGlass data, total liquidations rose 88% in 24 hours, totaling $2.1 billion, while open interest fell 6% to $141 billion. Market momentum has also weakened, with the average crypto market relative strength index now at 39. Despite the drop, the Crypto Fear & Greed Index rose slightly to 23, though it remains in “extreme fear” territory. ETF outflows and risk-off sentiment pressure markets Outflows from U.S.-listed crypto ETFs have continued for a fifth straight trading day. As per SoSoValue data, spot Bitcoin ETFs recorded $577 million in net redemptions on Nov. 4, while spot Ethereum ETFs saw $219 million withdrawn. This streak of withdrawals has dampened market confidence and reduced liquidity, especially among institutional traders who had driven inflows during the summer rally. The decline is a part of a larger volatility pattern that began in October and continued into early November. Investors are reacting to uncertainty around the Federal Reserve’s interest rate trajectory, stronger U.S. labor data, and persistent inflation. These factors that have pushed capital toward Treasuries and away from high-risk markets. At the same time, tensions between the U.S. and China and recent decentralized finance infrastructure failures, including the $128 million Balancer exploit, have weighed on Ethereum-linked assets and DeFi tokens. Rising Treasury yields and a stronger U.S. dollar have added further strain. Market outlook: Short-term pressure, seasonal tailwinds For the first time since 2018, Bitcoin ended October in red, with both whales and long-term holders putting selling pressure on the price. Analysts expect continued caution as traders watch whether Bitcoin can maintain psychological support near $100,000. But historically, November has been one of the best months for cryptocurrency, with previous cycles demonstrating recoveries following shakeouts driven by leverage. Some strategists view the current downturn as a reset rather than a reversal, noting that sustained accumulation and reduced exchange balances remain constructive for the long term.
