Bitcoin News Today: Institutional Exodus Triggers $400M Crypto Liquidations as Fed Hesitation Deepens Downturn

The cryptocurrency market faced a broad sell-off on November 3, 2025, as Bitcoin and Ethereum dropped over 4%, triggering more than $400 million in liquidations and intensifying concerns about macroeconomic pressures, according to a Coinpedia report. The downturn was driven by a combination of a hawkish U.S. Federal Reserve, sustained outflows from Bitcoin exchange-traded funds (ETFs), and heightened volatility in altcoins.

The Fed's cautious stance on rate cuts emerged as a key catalyst. After a 25-basis-point rate reduction in October, Federal Reserve Chair Jerome Powell signaled that a December cut was not guaranteed, bolstering the U.S. dollar and dampening risk appetite, the Coinpedia piece noted. The CME FedWatch Tool reflected this shift, with the probability of a December rate cut falling to 69.3% from earlier highs, the report added. Treasury Secretary Scott Bessent further underscored policy constraints, warning that tight monetary conditions had already slowed parts of the economy, Coinpedia wrote.

Bitcoin ETFs exacerbated the sell-off, with $1.15 billion in outflows recorded in the prior week alone, the Coinpedia piece reported. Major asset managers like BlackRock, ARK Invest, and Fidelity saw significant withdrawals, indicating a retreat by institutional investors, the report said. The liquidation wave intensified as Bitcoin fell below $107,500, triggering nearly $400 million in long-position liquidations, and analysts warned that a break below $106,000 could unleash another $6 billion in liquidations, deepening the downturn.

Altcoins fared worse, with the top 50 tokens tumbling nearly 4% in a single day, Coinpedia noted. Ethereum dropped 4.4% to $3,734, while XRP and BNB fell 3.38% and 4.8%, respectively. Bitcoin's market dominance climbed to 60.15%, as traders shifted to safer assets. The selloff also echoed broader market jitters linked to U.S.-China trade tensions and global economic uncertainty, according to a Yahoo Finance analysis, though recent diplomatic progress between the two nations had briefly stabilized prices earlier in October, the Yahoo piece observed.

Market sentiment remained bearish, with the Crypto Fear and Greed Index lingering in the "fear" zone at 35, according to an Economic Times report. Long-term holders added to the downward pressure, selling over 100,000 BTC in October, the Economic Times observed. Meanwhile, the negative premium on Coinbase—a key gauge of U.S. retail demand—highlighted weak buying interest, the report added.

Despite the turmoil, some analysts remained optimistic about Bitcoin's long-term trajectory. Tom Lee of FundStrat Capital reiterated his $200,000 year-end target for Bitcoin and $7,000 for Ethereum, according to CoinDesk, though he acknowledged the need for consolidation before a rally.

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