Bitcoin News Today: Bitcoin Plummets on DeFi Collapse and Macro Fears, $92K Looms

Bitcoin (BTC) fell below $104,000 on November 4, 2025, marking a 3.2% daily drop to $103,849, according to CoinGecko data, as reported by Coinotag. The decline follows a deepening crisis in decentralized finance (DeFi), macroeconomic uncertainties, and a surge in leveraged liquidations totaling $1.37 billion in 24 hours, according to the same Coinotag coverage. Analysts warn that a breakdown below the $106,600 support level could push prices toward the $98,000 to $100,000 range, with further risks of a slide to $92,000, as noted by TradingView.

The recent sell-off was triggered by a combination of internal and external pressures. DeFi protocols, already reeling from a $128 million exploit at Balancer in October, faced renewed scrutiny after Stream Finance disclosed $93 million in asset losses, according to Coinotag. This, coupled with an estimated $284 million in bad debt across lending markets, has fueled contagion fears, leading to forced redemptions in stablecoins and vaults, as the Coinotag piece described. "Confidence was already shot before Stream imploded," said Derek Lim, Head of Research at Caladan, noting that high leverage amplifies any catalyst into a full risk-off event, a point detailed by Coinotag.

Macroeconomic headwinds have compounded the crypto market's struggles. Weak U.S. jobs data and a hawkish stance from the Federal Reserve have driven risk assets lower, with Bitcoin down 17.5% from its October high. Meanwhile, U.S.-China trade tensions, though recently de-escalated, remain a looming threat. President Donald Trump's remarks restricting access to Nvidia's advanced Blackwell AI chips to U.S. customers further tempered optimism, according to FXStreet.

Institutional investors have also retreated, with spot Bitcoin ETFs recording nearly $800 million in weekly outflows, as FXStreet reported. This follows a record $45.6 million purchase of 397 BTC by an unnamed strategy firm at an average price of $114,771, which increased its holdings to 641,205 BTC valued at $69 billion, a detail first reported by TradingView. Such mixed signals highlight divergent market sentiment: while some institutions accumulate, others offload amid uncertainty.

The DeFi crisis has also exposed vulnerabilities in crypto infrastructure. Hut 8 Corp., a major Bitcoin miner, reported a strategic Bitcoin reserve of 13,696 BTC ($1.6 billion) as of September 30, 2025, per Hut 8's Q3 results, while Sequans Communications, a pioneer in Bitcoin treasury, used 3,234 BTC ($365.6 million) to repay half of its $189 million convertible debt, according to Sequans preliminary results. These moves underscore the dual role of Bitcoin as both a speculative asset and a balance-sheet hedge.

Despite the turmoil, some analysts see potential for a recovery. Historical data from CoinGlass shows November has historically been the strongest month for Bitcoin, delivering an average return of 42.32%, a pattern FXStreet highlighted. However, Myriad's prediction market indicates a 71% probability of Bitcoin hitting $100,000 rather than $120,000, a projection the Coinotag coverage also mentioned. "Liquidations may clear excess leverage, enabling a sustainable rebound if sentiment stabilizes," said Ryan Lee of Bitget, another point covered by Coinotag.

The path forward remains fraught. With Bitcoin's market dominance at 60%, altcoins have also suffered, with over half of assets down 30-60% year-to-date, as reported by Coinotag analysis. Yet, ETF-related inflows for tokens like Solana and XRP suggest niche opportunities, a trend Coinotag also noted. As the market grapples with DeFi instability and macroeconomic volatility, investors will likely remain cautious until clarity emerges.

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