Crypto prices today (Nov. 5): BTC, ETH, XRP, BNB fall sharply amid $2B in liquidations
Crypto markets experienced a sharp downturn due to high leverage, significant ETF outflows, and macroeconomic pressures. Bitcoin dropped below $100,000 briefly, liquidations surged to $2.1 billion, and the total crypto market cap fell by 4.5% to $3.47 trillion, erasing $300 billion in value. Ethereum, XRP, and BNB also saw significant declines. ETF outflows, stronger U.S. dollar, rising Treasury yields, Federal Reserve policy uncertainty, and geopolitical tensions have pressured markets further. Despite the decline, November is historically a strong month for recovery in cryptocurrencies, and some analysts view this as a market reset rather than a reversal.
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Crypto Market Faces Sharp Downturn
Crypto prices today showed a sharp downturn as high leverage and sustained exchange-traded fund (ETF) outflows accelerated a sell-off across major assets. Bitcoin fell below $100,000 as $2 billion in liquidations hit the market. ETF outflows combined with macroeconomic pressures have kept market sentiment weak. Historically, November has often brought rebounds, yet traders remain cautious in light of the current conditions.
Bitcoin and Ethereum Lead the Market Decline
As of November 5, the total crypto market cap dropped 4.5% to $3.47 trillion, erasing roughly $300 billion in value within hours. Bitcoin fell below the $100,000 threshold for the first time since late June, briefly touching $99,075 before stabilizing near $100,870, a daily decline of approximately 5%. Ethereum experienced a steeper pullback, dropping 8.6% to $3,322, while XRP and BNB dipped 3.5% to $2.24 and 4.4% to $948, respectively.
Leverage and Liquidations Intensify Sell-Off
Increased leverage in derivatives markets played a significant role in the downturn. CoinGlass data reveals that total liquidations surged 88% in 24 hours, reaching $2.1 billion, while open interest fell 6% to $141 billion. Market momentum also weakened, with the average crypto market relative strength index (RSI) dropping to 39. Despite the decline, the Crypto Fear & Greed Index rose slightly to 23, though it remains in the 'extreme fear' category.
ETF Outflows and Macro Risks Weigh on Sentiment
Outflows from U.S.-listed crypto ETFs continued for the fifth consecutive trading day. According to SoSoValue data, spot Bitcoin ETFs recorded $577 million in net redemptions on November 4, while spot Ethereum ETFs withdrew $219 million. This ongoing streak of withdrawals has significantly dampened market confidence and reduced liquidity. Institutional traders, who had driven inflows during the summer rally, are now facing uncertainty.
Macro and Geopolitical Factors Add to Pressure
Broader macroeconomic and geopolitical uncertainties have also intensified the volatility. Investors are reacting to Federal Reserve interest rate policy, stronger U.S. labor data, and persistent inflation, pushing capital toward Treasuries and away from high-risk assets. Simultaneously, U.S.-China tensions and recent decentralized finance (DeFi) exploits, like the $128 million Balancer exploit, have negatively impacted both Ethereum-linked assets and DeFi tokens. Rising Treasury yields and a stronger U.S. dollar have added further strain.
Market Outlook: Short-Term Pressures vs Seasonal Patterns
For the first time since 2018, Bitcoin ended October in red, with both whales and long-term holders contributing to selling pressure. Analysts anticipate continued caution as traders monitor whether Bitcoin can maintain psychological support near $100,000. However, historical data shows that November has often been a recovery month, with rebounds following leverage-driven shakeouts. Some strategists interpret the current downturn as a market reset rather than a reversal, highlighting long-term accumulation and reduced exchange balances as constructive signs.