Why Is Crypto Down Today? – November 5, 2025

The cryptocurrency market experienced a decline today, with the total market capitalization decreasing by 2.6% to $3.46 trillion, as reported by CoinMarketCap. However, trading volume in the last 24 hours increased to $292 billion, indicating that market participation remains robust despite the downturn.

Key Takeaways

The global cryptocurrency market cap has decreased 2.6% to $3.46 trillion.
Bitcoin (BTC) is down 2.5% at $101,674, while Ethereum (ETH) has fallen 6.0% to $3,299.
The Fear & Greed Index dropped to 20 (Fear) from 27 yesterday.
BTC ETFs had outflows of $577.7 million, while ETH ETFs saw $219.4 million in outflows.
Solana (SOL) ETFs showed a contrary trend with inflows of $14.8 million.
Metaplanet borrowed $100 million from a Bitcoin-backed facility for BTC purchases and share buybacks.
Bitcoin briefly fell below $100,000 amid uncertainties from the U.S. government shutdown and Federal Reserve decisions.
Zohran Mamdani was elected NYC mayor, with traders accurately predicting the result.

Why Is Crypto Down Today? – November 5, 2025

Crypto Market Overview

Bitcoin and Other Major Cryptocurrencies

Currently, most of the leading cryptocurrencies have shown a decline in the past 24 hours. Bitcoin (BTC) has dropped 2.5% to $101,674, which keeps its market capitalization at $2.02 trillion.

Ethereum (ETH) fell 6.0% to $3,299, while BNB (BNB) decreased by 1.3% to $943. XRP (XRP) saw a decline of 1.9% to $2.23, and Solana (SOL) dropped 3.0% to $156, extending its losses from last week. Dogecoin (DOGE) decreased by 1.6% to $0.163, and Cardano (ADA) fell 2.5%, now priced at $0.531.

Despite the general downturn in the market, some tokens are showing remarkable gains. Momentum (MOM) led with a surge of 242.4%, followed by DeAgentAI (DAI), rising by 65.5%, and Anvil (ANV) increasing by 53.1%. Tokens like Intuition (ITU) and Firo (FIRO) are also gaining traction, reflecting trader interest in AI and privacy-focused projects amid the ongoing market fluctuations.

In a notable move, Tokyo-listed Metaplanet executed a $100 million Bitcoin-backed borrowing on October 31, utilizing a $500 million credit facility set up previously for further crypto investments, expanding its options trading, and potentially funding share buybacks. This conservative approach represents only 3% of Metaplanet’s substantial $3.5 billion Bitcoin reserve, ensuring ample collateral support even amid potential market downturns.

Bitcoin Drops Below $100K Amid Economic Concerns

Bitcoin briefly dropped to a five-month low below $100,000 as traders reacted to the ongoing U.S. government shutdown and rising fears over economic growth. Ether significantly declined, falling over 12% to $3,179, and total liquidations in the crypto market exceeded $2.09 billion in just 24 hours, mainly from long positions.

Analysts suggest that this drop is influenced more by spot investors withdrawing rather than leveraged futures, following indications from Federal Reserve Chair Jerome Powell that a rate cut in December is not guaranteed. The broader crypto market experienced a downward shift, with the total market cap down 4.8% to $3.45 trillion, while Bitcoin’s dominance climbed above 60% as investors sought safety.

Warnings have been issued that altcoins could potentially fall another 30% against Bitcoin as liquidity decreases and speculative interest fades. Global stock indexes, including the S&P 500 and Nasdaq, suffered their largest daily losses since early October, primarily influenced by weakness in tech sectors and renewed cautions from major banks about asset bubbles linked to the AI boom.

The prolonged U.S. government shutdown, now extending to 36 days, has halted key economic data releases, causing investors to depend more on private indicators for market insights. Coupled with renewed trade threats from Trump against China and uncertainty regarding future Federal Reserve rate cuts, a bearish sentiment has taken over global markets.

Nevertheless, analysts like Ryan Lee from Bitget indicate a potential rebound for Bitcoin towards the $115,000 to $120,000 range if macroeconomic conditions stabilize, though geopolitical risks and inflation concerns remain significant threats.

Future Market Levels and Important Events

At the moment, Bitcoin is trading around $101,992, reflecting a slight increase of 0.52% for the day following its recent dip below the $100,000 mark. The cryptocurrency is trying to find stability near the lower end of its recent trading range, although investor sentiment remains delicate after recent sell-offs.

BTC is fluctuating between $101,000 and $104,000, suggesting a period of short-term consolidation following heavy liquidation events. A breakthrough above $104,500 could pave the way for a recovery towards $107,000 and $110,000, while failing to maintain the $101,000 support level might expose the market to dips toward $98,500-$97,000, a critical area for potential rebounds.

Meanwhile, Ethereum is trading near $3,319, posting a 1.02% increase for the day as it recovers slightly from Monday's significant drop that had driven prices to their lowest since July.

Ethereum faces significant resistance near the $3,400-$3,500 range, where selling pressure is still strong. A sustained move above $3,550 could indicate a short-term reversal toward $3,750-$3,900, while a drop below $3,250 may trigger a deeper correction towards the $3,000-$2,950 range.

Market sentiment has worsened, with the Crypto Fear and Greed Index falling to 20, indicating deep “Fear” in the market. Just yesterday, this index was at 27, and last week it was at 39, showing a consistent decline from neutral territory into fear as market sell-offs increased. The current reading represents one of the lowest sentiment levels recorded since early 2024, reflecting a shift in investor sentiment from optimism to caution.

Significant outflows in spot Bitcoin exchange-traded funds (ETFs) reached $577.7 million on November 4, a clear indication of escalating selling pressure in institutional Bitcoin products, as per data from SoSoValue. Cumulatively, net inflows for all U.S. spot Bitcoin ETFs amount to $60.42 billion, with total net assets of $134.53 billion, which represents 6.69% of Bitcoin’s overall market capitalization. Trading volume saw an active $8.94 billion, showcasing institutional participation despite the prevailing bearish sentiment.

Breaking down individual issuers, Fidelity’s FBTC experienced the largest outflow of $356.6 million, followed by Grayscale’s GBTC at $48.9 million and Ark & 21Shares’ ARKB with $128.1 million. BlackRock’s IBIT had no inflows or outflows for the day but remains a leading entity with $80.2 billion in net assets, trailed by Fidelity at $20.2 billion and Grayscale at $17.2 billion.

In addition to Bitcoin, spot Ethereum ETFs also noted $219.37 million in outflows on the same day. BlackRock’s ETHA led the redemptions with outflows of $111.08 million, followed by Grayscale’s ETHE at $19.78 million, Fidelity’s FETH at $19.86 million, and Grayscale’s ETH with $68.64 million. The total cumulative net inflow for U.S. spot Ethereum ETFs now rests at $14.01 billion, while total net assets have dropped to $21.12 billion, constituting 5.45% of Ethereum’s market cap. The daily trading volume reached $4.15 billion, illustrating robust activity even as institutional sentiment remains subdued.

Interestingly, spot Solana ETFs continue to gain traction, recording $14.83 million in net inflows on November 4. From the two listed products, Bitwise’s BSOL gained the most with $13.16 million inflows, while Grayscale’s GSOL added $1.67 million. The cumulative net inflow for Solana now totals $284.09 million, with total net assets at $488.80 million, accounting for 0.58% of Solana’s market capitalization, and a total daily trading volume of $68.53 million reflecting steady investor engagement despite the broader market challenges.

In political news, Zohran Mamdani has been elected as the next mayor of New York City, marking a significant moment for the city and a notable success for crypto prediction markets, which accurately called the winner. Data from Polymarket, the blockchain-based prediction platform, revealed that 92% of traders placed bets on Mamdani’s victory prior to election day, including a $1 million wager that pushed implied odds close to certainty.