The cryptocurrency market faced a sharp sell-off on Monday, November 3, as a wave of liquidations erased nearly $400 million in leveraged positions, triggering a broad market downturn.
Market Snapshot: Over $3.69 Trillion Wiped from Global Cap
According to data from CoinGlass, more than $395.7 million in crypto positions were liquidated over the last 24 hours, affecting over 162,000 traders. The majority of these were long positions, accounting for around $334.7 million of the total.
Ethereum (ETH) took the hardest hit with $85 million in forced closures, followed by Bitcoin (BTC) at $74.6 million, and Solana (SOL) at $35 million.
As a result, the global crypto market cap dropped 3.1% to $3.69 trillion, with most major tokens following suit.
- Bitcoin (BTC): down 2.3% to $107,901
- Ethereum (ETH): down 3.7% to $3,753
- Solana (SOL): down 4.9% to $178
- XRP (XRP): down 2.7% to $2.45
Profit-Taking and Fed Uncertainty Trigger Pullback
The sell-off followed a short-lived rally earlier in the day that saw the market briefly touch $3.81 trillion in total capitalization. Analysts say the drop was driven largely by profit-taking, as traders cashed in gains from the recent rebound spurred by optimism over a U.S.-China trade deal.
However, sentiment quickly shifted after Federal Reserve Chair Jerome Powell’s recent remarks suggested a cautious approach to rate cuts, dampening risk appetite across financial markets.
According to Polymarket data, the odds of another 25-basis-point rate cut in December have slipped to 67%, down from previous expectations, as traders reassess the Fed’s next move.
Investors Await U.S. Jobs Data
Market participants are also treading carefully ahead of the U.S. jobs report due this Friday. Economists expect hiring to slow, but unemployment to stay near current levels a mix that could either confirm a “soft landing” or raise concerns about an economic slowdown.
Until that data is released, analysts expect risk assets like crypto to remain volatile and directionless, as traders await more clarity on the Fed’s policy path.
Bitcoin’s October Slump Dampens Sentiment
The weak start to November comes right after Bitcoin closed October down 3.7%, marking its worst monthly performance since 2018. The drop dashed hopes for the so-called “Uptober” rally a recurring trend where Bitcoin historically posts gains in October.
The Crypto Fear and Greed Index currently sits at 42, still in the “Fear” zone, reflecting ongoing investor caution. While this is a slight improvement from Sunday’s score of 37, it shows that confidence in a near-term rebound remains fragile.
Recession Worries Add to Pressure
Adding to the market’s anxiety, U.S. Treasury Secretary Scott Bessent warned over the weekend that the Federal Reserve’s restrictive policy may have already pushed parts of the economy, especially the housing sector, into a mild recession.
He noted that while this could justify future rate cuts, it also signals that the Fed may be reacting to economic weakness rather than acting proactively a scenario that often unsettles markets.
Crypto prices initially jumped on the hope of policy easing but quickly reversed as traders weighed the risks of a slowing economy.
The Bottom Line
Monday’s sharp sell-off highlights how fragile crypto market sentiment remains amid macroeconomic uncertainty. With nearly $400 million in leveraged positions wiped out, and the Fear and Greed Index still flashing “Fear,” traders appear to be taking a wait-and-see approach until the next major catalyst likely the U.S. jobs data later this week.
Until clearer signals emerge from the Fed and broader economy, analysts expect crypto markets to stay choppy, with profit-taking and volatility continuing to dominate short-term price action.
