The cryptocurrency market experienced a notable downturn on November 3, driven by aggressive market liquidations totalling approximately $400 million. The decline followed fresh comments from the Federal Reserve indicating a hawkish monetary-policy stance, which intensified investor concerns that tighter policy could dampen liquidity and increase macro risk—and by extension, weigh heavily on digital assets.
In recent weeks, the crypto market had begun to show signs of stabilising after the turbulence of previous years, during which regulatory uncertainty and wild price swings were the norm. For example, the leading asset, Bitcoin, had been trading in a relatively narrow range, while major altcoins such as Ethereum, Binance Coin and Solana had seen modest recoveries. But the Fed’s recent shift prompted a sell-off in the crypto space: fears of higher borrowing costs and reduced liquidity triggered leveraged trades to unwind rapidly.
According to official data, over $395.7 million in leveraged positions were liquidated in the past 24 hours, with close to 162,000 traders impacted—especially long positions in Bitcoin and Ethereum. The onset of this liquidation cascade was linked to Bitcoin slipping below around $107,500 and Ether likewise weakening.
The event has triggered a sentiment shift: retail investors, institutional traders and fund managers are all re-evaluating their crypto exposures amid renewed risk aversion. Some analysts suggest the correction may be temporary, while others warn that unless macro conditions improve, the broader crypto ecosystem could face further pressure.
Looking ahead, investors are being advised to monitor upcoming macro-economic data releases, Fed communications and any regulatory announcements affecting digital-asset markets. These developments will likely play a key role in determining whether crypto markets can regain momentum or face an extended downside.
Summary
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✅ Verified that on November 3, 2025 the crypto market saw around $400 million in leveraged liquidations.
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✅ The link between hawkish signals from the Fed (especially uncertainty about rate cuts) and the drop in crypto asset prices has been widely reported.
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✅ Bitcoin did drop into the low $100 K range (~$106 000-107 500) in this period.
What is the main reason for today’s crypto decline?
The primary reason is the hawkish stance by the Federal Reserve, which has increased fears of higher interest rates and tighter monetary policy.
How much in liquidations occurred today?
Approximately $400 million worth of positions were liquidated, mainly affecting leveraged traders in Bitcoin and Ethereum.
What should investors watch for next?
Next, investors should monitor Federal Reserve communications, macroeconomic data, and upcoming earnings reports from crypto exchanges for signs of market stabilization or further declines.
