Ethereum News Today: Crypto's Perfect Storm: Tariffs, Fed Hesitation, and Hacks Trigger $1.1B Liquidations

The cryptocurrency market reeled on November 4, 2025, as Bitcoin (BTC) and Ethereum (ETH) slumped amid a perfect storm of geopolitical uncertainty, Federal Reserve ambiguity, and cascading liquidations. Bitcoin fell below $107,000, while ETH tumbled to $3,292.57, triggering over $1.1 billion in liquidations in a 24-hour period, according to a CoinDesk report. The selloff followed a volatile October marked by a record $19 billion in liquidations after U.S. President Donald Trump's announcement of 100% tariffs on Chinese imports, according to a Bybit × Block Scholes report, compounding fears of a prolonged bearish phase.

The immediate trigger for the November 4 crash stemmed from Trump's earlier tariff threats, which spooked global markets and prompted a risk-off selloff. Although Trump and Chinese President Xi Jinping later softened tensions, the initial shockwaves persisted. "The market is still digesting the uncertainty," said Markus Thielen of 10x Research, who warned that ETH could fall to $2,700–$2,800, as reported by CoinDesk.

Adding to the turmoil, Federal Reserve Chair Jerome Powell's hawkish remarks during the October FOMC meeting cast doubt on the likelihood of a December rate cut. Powell emphasized "strongly differing views" within the Fed about monetary policy, leaving investors wary of further tightening, as Cointelegraph reported. Despite a 25-basis-point rate cut in October, the Fed's cautious stance and delayed liquidity injections — following the end of quantitative tightening — left crypto markets vulnerable.

The collapse was amplified by leveraged trading. CoinGlass data revealed that $970 million in ETH derivatives were liquidated in two days, with over 80% of losses tied to long positions, according to a Yahoo Finance roundup. Meanwhile, a $110 million hack of the Balancer DeFi protocol and a $93 million loss at Stream Finance eroded confidence in Ethereum's security, deepening the selloff, as reported by The Economic Times.

The damage extended beyond spot markets. The Bybit × Block Scholes report noted that perpetual swap open interest plummeted by $6 billion after the October 10 liquidation event, stabilizing near $10 billion but reflecting cautious positioning. Funding rates turned negative across major assets, a rare occurrence signaling acute market stress.

Despite Trump's recent trade deal with China, crypto sentiment indicators stayed bleak. The widely followed Crypto Fear & Greed Index registered a "fear" score of 37 on November 3, up slightly from 33 the prior day but still deep in bearish territory, according to Investorempires. Analysts attributed the lackluster response to lingering macroeconomic risks and the Fed's unresolved policy path.

Bitcoin and ETH showed limited recovery, trading at $110,354 and $3,895 respectively, up just 0.26% and 0.84% in 24 hours, TradingView reported. Institutional players, however, appeared unfazed. Whale activity and staking demand suggested long-term bullishness, while corporate treasuries—such as ETHZilla's $40 million ETH sale—highlighted structural selling pressures.

The crisis also exposed regulatory gaps. Onchain data revealed a trader who shorted Hyperliquid 30 minutes before Trump's tariff announcement, netting $160 million — a move raising insider trading concerns, according to Coinotag. Experts called for updated enforcement frameworks to address digital asset risks, as outdated laws fail to cover pre-trade manipulation in a sector where volatility is the norm.

While the selloff has been severe, some analysts argue the market is in an early bull cycle. Van de Poppe of MN Trading Capital noted that the October crash could be a "bottom day in hindsight," with altcoins and Bitcoin poised for a rebound, as TradingView observed. Historical patterns suggest corrections often precede strong rallies, and whale accumulation during the downturn points to eventual recovery.

However, caution is warranted. With open interest subdued and funding rates stabilizing near neutral levels, traders remain risk-averse. The path forward depends on the Fed's December decision, U.S.-China trade dynamics, and whether regulators can address systemic vulnerabilities without stifling innovation.