**Why Is the Crypto Market Down Today, On Nov 3?**
Bitcoin, Ethereum, and major altcoins experienced significant declines of over 10%, resulting in more than $400 million in liquidations within just 24 hours. But what’s really driving this sudden downturn? Let’s take a closer look.
### Fed Official Hints at No Further Rate Cut
One of the main reasons behind today’s drop is renewed caution from the U.S. Federal Reserve. After cutting rates by 25 basis points in October, Fed Chair Jerome Powell indicated that another rate cut in December isn’t “a foregone conclusion.” This statement boosted the U.S. dollar and dampened investor sentiment across markets.
Adding to the cautious outlook, Treasury Secretary Scott Bessent warned that tight monetary policies have already slowed parts of the economy, leaving limited room for additional rate cuts. Reflecting this sentiment, the FedWatch Tool now shows the probability of another rate cut has fallen to 69.3%, highlighting growing doubts about further policy easing.
### Bitcoin ETFs See Billions in Outflows
Adding to the market pressure, Bitcoin ETFs continue to experience heavy outflows. Recent data from Fairside reveals that U.S. spot Bitcoin ETFs recorded $1.15 billion in withdrawals last week alone.
The largest outflows came from funds managed by BlackRock, ARK Invest, and Fidelity, suggesting that investors are pulling back from Bitcoin-linked financial products amid the current volatility.
### Long Liquidations Deepen the Sell-Off
The fall of Bitcoin below $107,500 triggered a chain reaction of long liquidations worth nearly $400 million, wiping out over 162,000 traders in a single day.
Bitcoin alone saw $74.6 million in long positions liquidated, while Ethereum accounted for $85.6 million. This rapid wave of liquidations has intensified the downward momentum.
Analysts now warn that if Bitcoin breaks below $106,000, another wave of liquidations — potentially worth $6 billion — could follow, which may deepen the sell-off further.
### Altcoins Hit Harder Than Bitcoin
Altcoins suffered even steeper losses, with the top 50 tokens falling nearly 4% in a single day. Bitcoin’s dominance climbed to 60.15%, indicating that traders are moving toward safer assets amid the market turmoil.
Specifically, Ethereum dropped 4.4% to $3,734, XRP fell 3.38%, and BNB slipped 4.8% to $1,039. However, Uniswap and Dogecoin were among the worst performers, losing 9% and 6.9% respectively.
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The combination of shifting Fed policies, significant outflows from Bitcoin ETFs, and cascading liquidations has created a challenging environment for cryptocurrencies today. Market participants will be watching closely for further developments, especially any moves by the Federal Reserve or key support levels on Bitcoin.
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