The cryptocurrency market experienced a steep correction on November 5, with more than $2 billion in leveraged positions liquidated in just 24 hours. The sharp downturn came as sustained exchange-traded fund (ETF) outflows and macroeconomic pressures combined to erode investor confidence across major digital assets.
The total crypto market capitalization fell 4.5% to $3.47 trillion, wiping out nearly $300 billion in value within hours.
Bitcoin (BTC) plunged below the $100,000 mark for the first time since late June, reaching an intraday low of $99,075 before stabilizing near $100,870, down roughly 5% on the day.
Ethereum (ETH) posted deeper losses, sliding 8.6% to $3,322, while XRP fell 3.5% to $2.24 and BNB dropped 4.4% to $948.
High Leverage and ETF Outflows Add Fuel to the Fire
Data from CoinGlass shows that total market liquidations jumped 88% in 24 hours, totaling $2.1 billion, while open interest declined 6% to $141 billion, signaling that traders are rapidly unwinding leveraged positions.
Market momentum also weakened, with the average crypto RSI falling to 39, suggesting growing bearish pressure. Yet, interestingly, the Crypto Fear & Greed Index edged up slightly to 23, though it remains firmly in “extreme fear” territory.
Meanwhile, ETF outflows continued for a fifth consecutive trading day, reflecting a broader risk-off sentiment among institutional investors.
According to SoSoValue, spot Bitcoin ETFs recorded $577 million in redemptions on November 4, while Ethereum ETFs saw $219 million withdrawn. The ongoing withdrawal streak has further drained market liquidity and weighed on sentiment.
Macro and Geopolitical Factors Deepen the Downturn
The latest market drop coincides with global macroeconomic uncertainty. Investors are grappling with hawkish signals from the U.S. Federal Reserve, stronger-than-expected labor data, and persistent inflation, which are driving capital away from risk assets and into Treasuries and the U.S. dollar.
Adding to the pressure, rising geopolitical tensions between the U.S. and China and a string of DeFi security breaches including the $128 million Balancer exploit have further shaken confidence in Ethereum-linked and DeFi tokens.
Short-Term Weakness, Long-Term Perspective
For the first time since 2018, Bitcoin closed October in the red, signaling broader fatigue after months of gains. Whales and long-term holders have reportedly been selling into strength, adding to the recent correction.
Still, analysts say that November historically favors recovery, as past cycles have seen markets rebound after leverage-driven shakeouts. Many view the current pullback as a healthy reset, not the end of the bull trend.
“Reduced exchange balances and continued accumulation from long-term wallets suggest structural strength beneath the volatility,” one market strategist noted.
If Bitcoin can hold above $100,000, traders believe the market could stabilize heading into mid-November especially as institutional inflows return once ETF redemptions slow.
While short-term volatility has rattled traders, many see the current correction as part of a broader consolidation phase after months of heavy leverage and institutional rotation. With November’s historical trend of recoveries and long-term fundamentals still intact, market observers are watching whether Bitcoin’s $100,000 support can spark the next leg of momentum.
