Crypto market bleeds $300b as Bitcoin dips below $100k
The cryptocurrency market experienced a sharp decline, losing over $300 billion in a single day, with Bitcoin dropping below $100,000 to $99,954, marking a 6% fall alongside the total market cap, now at $3.36 trillion. Significant factors included $1.3 billion in liquidations (dominated by long positions), a stronger U.S. dollar signaling a 'risk-off' environment, and ETF outflows. Bitcoin and Ethereum ETFs had $1.4 billion in outflows, contributing to the market's dip. Analysts suggest a potential recalibration phase, anticipating Bitcoin might trade between $94,000 and $118,000 in the short term, with market confidence hinging on Bitcoin holding key resistance levels.
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Crypto Market Plummets
The crypto market is deeply in the red today, losing over $300 billion in a single day as Bitcoin slid under $100,000. Bitcoin and the total crypto market cap were down 6%, with Bitcoin trading at $100,800 while the crypto market cap stood at $3.36 trillion. This massive decline happened in just 24 hours, marking one of the steepest drops in recent months.
Key Factors Behind Bitcoin's Drop
Bitcoin fell below a critical support level of $105,000 to hit $99,954, driven by significant ETF outflows and a spike in liquidations. Liquidations reached $1.3 billion on November 4, with long liquidations dominating at $1.1 billion. This dramatic downturn signals vulnerability in the market amid a broader sell-off.
Strong U.S. Dollar and Market Sentiment
The U.S. dollar's rise to a four-month high against the euro likely influenced investor sentiment. A stronger dollar typically indicates a "risk-off" environment, where investors seek safer assets like U.S. Treasuries and withdraw from riskier investments such as Bitcoin. Furthermore, uncertainty around Federal Reserve rate cuts has made traditional investments more attractive, tightening global liquidity and reducing speculative flows into crypto markets.
ETF Outflows Intensify Pressure
Over the past few days, Bitcoin and Ethereum spot ETFs have faced their fifth consecutive day of outflows. Spot outflows totaled $189,500 for Bitcoin (BTC) and $135,700 for Ethereum (ETH). These consistent outflows further underscore investors' cautious approach in the current market environment, contributing to downward pressure on the crypto market.
Market Outlook: Recalibration Phase?
After a highly volatile October, analysts suggest that crypto markets could be entering a "recalibration phase" in November. Lacie Zhang, a research analyst at Bitget Wallet, predicts Bitcoin may trade in the $94,000–$118,000 range in the near term. She highlights that the lower bound represents a healthy retracement zone consistent with subdued ETF inflows. If Bitcoin holds above key resistance levels, market confidence may return, potentially enabling a rotation from Bitcoin and Ethereum to altcoins.