The crypto market experienced a dramatic downturn on November 4, 2025, as Bitcoin (BTC) briefly retreated below the critical psychological threshold of $100,000 for the first time since June.
The scale of the sell-off
Bitcoin dipped as low as $99,982 before bouncing back slightly, marking a daily drop of over 5% and placing the asset on the cusp of bear market territory (a 20% drop from the record high of $126,272 set in early October).
The sharp price drop triggered another massive liquidation event, with over $1.37 billion in leveraged long positions being wiped out across exchanges, contributing to the selling pressure.
Underlying causes
Market analysts pointed to continued investor caution following the prior month’s severe “flash crash” that erased nearly $400 billion from the total market cap. Furthermore, a perceived hawkish stance from the U.S. Federal Reserve, cooling expectations for a December interest rate cut, was seen as reducing risk appetite across all momentum trades, including crypto, gold, and tech stocks.
This market movement confirmed the fragility of investor sentiment and the high leverage still present in the system, even after previous major corrections. The total market capitalization of all tokens tracked by CoinGecko dropped to approximately $3.45 trillion. The event highlighted that while institutional adoption is growing, the market remains highly sensitive to macro-economic data and liquidity concerns.
