Bitcoin News Today: Fed's Cautious Stance and ETF Outflows Drive $1.13B Crypto Liquidations

The cryptocurrency market experienced a sharp downturn on November 3, 2025, with Bitcoin and altcoins plummeting amid $1.13 billion in liquidations, driven by a combination of Federal Reserve signals, ETF outflows, and cascading sell-offs. Bitcoin fell below $107,500, triggering $74.6 million in long liquidations, while Ethereum lost 4.4% to $3,734. The total crypto market cap dropped nearly 3%, with altcoins like Uniswap and DOGE declining over 6% as traders shifted to safer assets, according to a Coinpedia report.

The U.S. Federal Reserve's cautious stance on additional rate cuts played a pivotal role. After a 25-basis-point cut in October, Fed Chair Jerome Powell stated a December reduction was not "a foregone conclusion," bolstering the dollar and dampening risk appetite, Coinpedia reported. Treasury Secretary Scott Bessent further reinforced this narrative, warning that tight monetary policy had already constrained economic growth, leaving limited room for future easing, per Coinpedia. The FedWatch tool now shows a 69.3% probability of a December cut, down from earlier projections, Coinpedia noted.

Bitcoin ETFs exacerbated the sell-off, with $1.15 billion in outflows reported for the week ending November 3, led by BlackRock, ARK Invest, and Fidelity, Coinpedia reported. This followed a broader trend of institutional withdrawals, including a $488.4 million outflow on October 30, primarily from BlackRock's IBIT ETF, according to a TradingView report. Over the prior week, Bitcoin ETFs saw a net outflow of $799 million, while Ethereum ETFs attracted $16 million, signaling a shift in investor priorities, according to a Coinpedia update.

The collapse in October 2025 set the stage for November's turmoil. A "black swan" event on October 10—triggered by President Trump's announcement of 100% tariffs on Chinese imports—erased $19.37 billion in leveraged positions within 24 hours, marking the largest single-day liquidation in crypto history, as described in a Yahoo Finance article. Bitcoin's price tumbled 18% to $104,782, while altcoins like Solana and Dogecoin lost 60–80% of their value, the article noted.

Altcoins continued to struggle in November, with the top 50 tokens falling nearly 4% in a single day. Bitcoin's dominance rose to 60.15%, reflecting a flight to safety, Coinpedia reported. Solana's ETF, however, bucked the trend, recording $197 million in inflows as investors sought alternatives to Bitcoin and Ethereum, according to a Coinotag report.

Coinbase reported mixed signals amid the volatility. While the exchange exceeded Q3 2025 revenue expectations at $1.9 billion, Bitcoin ETF outflows pressured institutional demand, according to a Coinotag report. Meanwhile, REX Shares launched the ULTI ETF, targeting income from crypto-related equities, underscoring Wall Street's evolving strategies in the sector, Coinotag noted.

Analysts warn that Bitcoin's break below $106,000 could trigger another $6 billion in liquidations, compounding downward momentum, Coinpedia warned. With the Fed's policy uncertainty and ETF outflows persisting, the market remains vulnerable to further corrections.