Finance

Bitcoin, Ethereum, and Altcoins Tumble: Did Crypto Traders Anticipate Economic Strain?

Crypto market plunged, liquidating over $1.16B as Bitcoin and Ethereum prices fell sharply.

byAndres Castro

November 3, 2025, 5:09 PM

Physical silver Ethereum and gold Bitcoin coins resting on computer hardware.

Physical Ethereum and Bitcoin coins on computer hardware. By MDL.

Executive Summary

The cryptocurrency market experienced a significant downturn on November 3, 2025, with over $1.16 billion in liquidations, predominantly from long positions.

Bitcoin’s price dropped 4% to $105,699, and Ethereum fell 7% to $3,583, while other major altcoins also recorded substantial losses.

Potential contributing factors to the slump included sell pressure from U.S. spot Bitcoin traders, signs of fragility in Ethereum’s charts, and broader economic concerns raised by U.S. Treasury Secretary Scott Bessent regarding high interest rates and recession risks.

The Story So Far

The recent cryptocurrency market downturn, marked by over $1.16 billion in liquidations, follows a disappointing October for crypto assets and was influenced by internal market dynamics such as sell pressure from U.S. spot Bitcoin traders and observed fragility in Ethereum’s charts, alongside broader economic concerns stemming from U.S. Treasury Secretary Scott Bessent’s remarks about high interest rates straining the economy.

Why This Matters

The recent crypto market slump, marked by over $1.16 billion in liquidations, underscores the significant volatility and risk inherent in digital assets, even when traditional stock markets remain stable. This downturn, driven by a combination of internal crypto dynamics like sell pressure and fragility in key assets alongside broader macroeconomic concerns about high interest rates and potential recession warnings from U.S. Treasury Secretary Scott Bessent, suggests the crypto market is increasingly susceptible to independent corrections influenced by both its own unique pressures and wider economic sentiment, potentially signaling continued short-term volatility.

Who Thinks What?

Pseudonymous analyst Maartunn from CryptoQuant suggests the market downturn was influenced by sell pressure from U.S. spot Bitcoin traders and “signs of fragility” in Ethereum’s charts after failing to hold key price levels.

U.S. Treasury Secretary Scott Bessent’s remarks about high interest rates straining the economy and potentially leading to a recession may have contributed to market anxiety, with crypto traders positioning for increased short-term volatility ahead of the week’s U.S. jobs report.

Bitcoin and other major cryptocurrencies experienced a significant market downturn on Monday, November 3, 2025, leading to over $1.16 billion in liquidations across the crypto market. The majority of these liquidations, totaling approximately $1.08 billion, were long positions, indicating a widespread bet against rising prices. This slump follows a disappointing October for crypto assets, with no obvious catalysts in traditional stock markets.

Market Plunge Details

Bitcoin saw its price dive 4% to a recent low of $105,699, marking its lowest point since October 17. Ethereum was hit even harder, falling approximately 7% to $3,583, a nearly three-month low. Other altcoins also suffered substantial losses, with XRP dropping about 7% to $2.33, while BNB, Solana, and Dogecoin each recorded daily declines of around 9%.

The wreckage was led by Bitcoin and Ethereum, which accounted for roughly $298 million and $273 million in liquidations, respectively. This severe market correction occurred despite major stock indices like the Nasdaq and S&P 500 remaining in positive territory.

Contributing Factors and Analyst Insights

While traditional markets offered no clear trigger for the crypto downturn, noted pseudonymous analyst Maartunn from CryptoQuant pointed to potential contributing factors. These included sell pressure from U.S. spot Bitcoin traders and “signs of fragility” observed in Ethereum’s charts, particularly after multiple retests of the $3,700 level without strong bounces.

The latest market movements also coincided with earlier comments from U.S. Treasury Secretary Scott Bessent, who remarked over the weekend that high interest rates were beginning to strain parts of the economy, potentially driving some sectors “into recession.” Crypto traders may have been positioning themselves for increased short-term volatility ahead of the week’s U.S. jobs report, which typically influences broader economic sentiment.

Key Takeaways

The cryptocurrency market faced a turbulent start to November, characterized by significant price drops for Bitcoin, Ethereum, and other major altcoins, resulting in over a billion dollars in liquidations. While traditional markets remained stable, internal crypto dynamics, analyst observations regarding sell pressure and Ethereum’s fragility, and broader economic concerns about interest rates appear to have influenced the downturn.