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Sohrab KhawasSohrab is a passionate cryptocurrency news writer with over five years of experience covering the industry. He keeps a keen interest in blockchain technology and its potential to revolutionize finance. Whether he's trading or writing, Sohrab always keeps his finger on the pulse of the crypto world, using his expertise to deliver informative and engaging articles that educate and inspire. When he's not analyzing the markets, Sohrab indulges in his hobbies of graphic design, minimal design or listening to his favorite hip-hop tunes.
- Nov 03, 2025 05:57 UTC
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Why Is the Crypto Market Down Today, On Nov 3?
Crypto market drops 3% as Bitcoin and Ethereum lead $400 million liquidation wave.
Fed signals no further rate cuts, boosting dollar strength and dampening crypto sentiment.
Meanwhile, Altcoins tumble harder than Bitcoin as traders move to safety; Uniswap, DOGE fall over 6%.
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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FAQs
Crypto prices fell after Fed officials signaled no further rate cuts, strengthening the dollar and weakening investor confidence.
The total crypto market cap dropped nearly 3%, with major coins like Bitcoin and Ethereum losing over 10% in 24 hours.
Bitcoin’s fall below $107,500 caused $400 million in long liquidations, wiping out over 162,000 traders in a single day.
Uniswap and Dogecoin led the losses, dropping 9% and 6.9%, while Ethereum and XRP also saw declines as traders moved to safety.
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