Bitcoin News Today: Institutional Buyers Defy Crypto Crash, Pour $163M into Bitcoin

The cryptocurrency market faced a sharp sell-off on November 3, 2025, with a 3% decline in total market capitalization as Bitcoin and Ethereum led a wave of over $400 million in liquidations, according to Coinpedia. The downturn was fueled by renewed uncertainty around Federal Reserve policy, with officials signaling no "foregone conclusion" for a December rate cut, Coinpedia noted. This caution, combined with heavy outflows from Bitcoin ETFs and aggressive short liquidations, deepened the selloff, pushing Bitcoin below $107,500 and triggering a cascade of leveraged positions being wiped out, Coinpedia reported.

The Fed's shifting stance has become a central driver of crypto volatility. After a 25-basis-point rate cut in October, Chair Jerome Powell's post-meeting remarks dampened expectations for further easing, with the FedWatch Tool now pricing in just a 69.3% chance of a December cut, Coinpedia added. Treasury Secretary Scott Bessent also warned that tight monetary policy has already constrained parts of the economy, limiting room for additional cuts, Coinpedia said. Meanwhile, the Bank of Japan's hawkish pivot in late October further pressured risk assets, with both central banks prioritizing inflation control over growth, as detailed in a Yahoo Finance report.

Bitcoin ETFs have exacerbated the downturn, with U.S. spot funds recording $1.15 billion in outflows last week alone, according to Coinpedia. BlackRock, ARK Invest, and Fidelity led the exodus, reflecting broader investor caution, Coinpedia said. This trend contrasts with Solana's BSOL ETF, which saw $197 million in inflows as institutional capital shifted toward high-performance altcoins, according to Coinotag. The divergence highlights a broader reallocation within crypto, with Ethereum and Bitcoin ETFs losing $750 million combined while Solana's ecosystem gains traction, Coinotag reported.

Technical indicators underscore the market's fragility. Bitcoin's drop below $107,500 triggered $74.6 million in long liquidations, with analysts warning that a break below $106,000 could unleash another $6 billion in forced selling, Coinpedia warned. Altcoins fared worse, with the top 50 tokens falling nearly 4% in a single day and Bitcoin's dominance rising to 60.15% as traders flocked to perceived safety, Coinpedia noted. Ethereum's 4.4% decline to $3,734 and BNB's 4.8% drop to $1,039 reflected the broader flight from risk, Coinpedia observed.

Despite the turmoil, some institutional players remain bullish. American Bitcoin Corp., backed by Donald Trump Jr., purchased 1,414 BTC ($163 million), pushing its holdings to 3,865 BTC valued at $446 million, according to Cryptorank. Michael Saylor's Strategy Inc. also hinted at another major Bitcoin purchase, with its $71 billion portfolio growing by 390 BTC in late October, per Coindoo. These moves signal enduring confidence in Bitcoin's long-term value, even as short-term volatility persists.

The market's next move may hinge on macroeconomic clarity. While Fed hesitation and geopolitical risks—such as Trump's earlier tariff threats—have weighed on sentiment, as noted in a Yahoo Finance article, recent U.S.-China trade deals and stabilizing equity markets offer potential catalysts for recovery, Coindoo suggested. For now, traders brace for further turbulence, with crypto's resilience tested against a backdrop of tightening monetary policy and shifting institutional flows.