The crypto market has had a rough start to November. Bitcoin dropped back toward the $100,000 area, Ethereum slipped below $3,400, and major altcoins like Solana, XRP, and Cardano are all flashing red across the board. In total, more than $1 trillion in crypto market cap has been wiped out since October 6.
So what exactly is happening here?
Despite strong long-term fundamentals, rapid adoption, and regulatory progress – prices are falling hard. And the real reasons behind this sell-off are less about fundamentals and more about three powerful forces hitting the market all at once.
What you'll learn 👉
Crypto ETF Outflows Hit Hard
One of the biggest pressures right now is coming from U.S. spot ETFs. On November 4 alone:
• Bitcoin ETFs saw $577.7M in net outflows
• Ethereum ETFs saw $219M pulled out
• BlackRock’s ETHA was the biggest seller with over $111M withdrawn
This marks five straight days of redemptions, the worst stretch since August. The flood of money leaving ETFs is a clear sign that TradFi investors are moving into a “risk-off” stance. That’s also showing up in the chart:
• Bitcoin’s correlation with the Nasdaq-100 jumped to 0.76 (highest since June)
When tech stocks stumble, crypto sinks right alongside.
What to watch next:
If upcoming CPI inflation data cools, ETF flows could flip bullish again.
Macro Fear Is Rising, And It’s Spreading to Bitcoin
The U.S. government shutdown has paused key economic reports, leaving markets blind and nervous. Traders don’t know how the Fed will move next, and uncertainty is poison for speculative assets like crypto.
• Crypto Fear & Greed Index plunged to 20 → “Extreme Fear”
• Bitcoin lost its $100K support, triggering trend-followers to sell
• ETH/BTC ratio dropped −1.3% as traders moved into BTC safety
This is classical recession-style positioning. Investors want certainty, and crypto isn’t giving them that right now.
What to watch next:
FOMC minutes on Nov 7 may provide clues about potential December rate cuts.
Leverage Is the Real Villain Behind This Crypto Crash
Here’s where things get ugly.
Leverage is at crazy levels, and every move in the market gets amplified.
In just 24 hours:
• $2.1B in crypto liquidations
• 80% of them were long positions
• Ethereum alone saw $921M flushed
• Funding rates flipped negative as open interest fell 6%
ETH’s RSI even hit 29 (deep oversold territory) but no strong bounce came because spot buyers are staying cautious.
And this is bigger than just one event:
✅ 300,000 traders liquidated per day (average)
✅ Markets reacting instantly to every headline
✅ Leverage turning dips into collapses
One analyst summed it up perfectly:
“Leverage is a wild drug.”
The million dollar question:
— The Kobeissi Letter (@KobeissiLetter) November 4, 2025
What is happening crypto right now?
Crypto markets have now officially erased over -$1 TRILLION of market cap since October 6th.
But why?
The answer to this question seems to be more technical than fundamental.
That is, crypto adoption is still…
Long-Term Strong… Short-Term Volatile
Crypto fundamentals remain powerful:
• Adoption is climbing
• ETFs are here
• AI + blockchain demand is rising
• Regulation turning supportive
But the reality is this:
Until leverage is flushed out and ETF flows stabilize…
we should expect bigger swings in both directions.
The worst pain often happens right before the next major recovery. Smart money knows that. For now, staying patient, and avoiding over-leverage, may be the smartest move anyone can make.
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