The cryptocurrency market closed the week with a sharp sell-off. As of November 3rd, the total market capitalization fell by approximately 3 percent, returning to the red. Many major crypto assets, particularly Bitcoin and Ethereum, experienced double-digit declines. The liquidation of over $400 million in long positions within 24 hours further deepened the decline.
No new Fed cut signal
The selling stems from statements from the US Federal Reserve (Fed). Fed Chair Jerome Powell, who cut interest rates by 25 basis points in October, said that a new cut in December was "not a certainty." This statement weakened investor expectations for easing policy; the dollar index strengthened, while risk appetite declined.
US Treasury Secretary Scott Bessent also stated that tight monetary policies were already slowing some parts of the economy, leaving limited room for further cuts. According to CME FedWatch data, the probability of a December interest rate cut has fallen to 69 percent. This has created selling pressure, particularly on cryptocurrencies, which are among the most interest-sensitive assets.
Billion-Dollar Outflow from Bitcoin ETFs
Another factor deepening the market decline was the massive outflows from US-based spot Bitcoin ETFs. According to Fairside data, a total of $1.15 billion was withdrawn from these funds last week alone.
Outflows from major funds like BlackRock, ARK Invest, and Fidelity indicate a decline in investor interest in institutional crypto products. This situation exacerbated the vulnerability of the Bitcoin price, causing the sell-off chain to lengthen.
Wave of Liquidations Exceeds $400 Million
Bitcoin's slide below $107,500 triggered a chain of liquidations in futures. More than 162,000 investors lost their positions in the last 24 hours. In Bitcoin alone, $74.6 million worth of long positions were liquidated, while in Ethereum, this figure reached $85.6 million. Across the market, $413 million worth of long positions were liquidated.
Analysts point to the risk of an additional liquidation of approximately $6 billion if BTC falls below $106,000. If this scenario plays out, the market is likely to enter a sharper correction in the short term.
Sharper decline in altcoins
Altcoins were hit much harder than Bitcoin. The top 50 cryptocurrencies lost around 4 percent on average. Bitcoin's market dominance increased to 60.15 percent, indicating that investors are turning to BTC as a "safe haven."
Ethereum fell 4.4 percent to $3,734, and BNB fell 4.8 percent to $1,039. XRP lost 3.3 percent to $0.56. Uniswap (UNI) and Dogecoin (DOGE) were among the day's sharpest-falling assets, with UNI losing 9 percent and DOGE losing 6.9 percent. The overall outlook suggests that the Fed's cautious stance and ETF outflows are suppressing market risk appetite, while leveraged trading and on-chain liquidations are accelerating the decline. The crypto market may remain volatile and directionless until the Fed meeting in December.
