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Bitcoin Updates: Federal Reserve's Careful Approach and ETF Withdrawals Lead to $1.13 Billion in Crypto Sell-Offs

Bitcoin Updates: Federal Reserve's Careful Approach and ETF Withdrawals Lead to $1.13 Billion in Crypto Sell-Offs

Bitget-RWA2025/11/03 16:26
By:Bitget-RWA

- Cryptocurrency markets crashed on Nov 3, 2025, with $1.13B in liquidations as Bitcoin fell below $107,500 and altcoins dropped over 6% amid Fed policy uncertainty. - Federal Reserve Chair Powell's cautious stance on rate cuts and ETF outflows—including $1.15B from BlackRock—exacerbated sell-offs, boosting dollar strength and risk aversion. - October's "black swan" event—$19.37B in 24-hour liquidations—set the stage for November's turmoil, with Solana and Dogecoin losing 60–80% of value during prior volat

The cryptocurrency sector saw a significant decline on November 3, 2025, as

and other digital assets plunged, resulting in $1.13 billion in liquidations. This drop was fueled by signals from the Federal Reserve, ETF withdrawals, and a wave of selling. Bitcoin slipped beneath $107,500, leading to $74.6 million in long positions being liquidated, while dropped 4.4% to $3,734. The overall value of the crypto market decreased by almost 3%. Altcoins such as and fell by more than 6% as investors moved toward safer investments, according to a .

The Federal Reserve’s cautious approach to further rate reductions was a major factor. After a 25 basis point cut in October, Fed Chair Jerome Powell remarked that a December cut was not “guaranteed,” which strengthened the dollar and reduced risk appetite, Coinpedia noted. Treasury Secretary Scott Bessent echoed this sentiment, cautioning that tight monetary policy had already slowed economic growth, leaving little space for more easing, Coinpedia reported. The FedWatch tool now indicates a 69.3% chance of a December rate cut, lower than previous estimates, according to Coinpedia.

Bitcoin Updates: Federal Reserve's Careful Approach and ETF Withdrawals Lead to $1.13 Billion in Crypto Sell-Offs image 0

Bitcoin ETFs intensified the decline, with $1.15 billion leaving these funds during the week ending November 3, led by

, ARK Invest, and Fidelity, as reported by Coinpedia. This was part of a broader pattern of institutional exits, including a $488.4 million withdrawal on October 30, mainly from BlackRock’s IBIT ETF, according to a . Over the previous week, Bitcoin ETFs saw a net outflow of $799 million, while Ethereum ETFs attracted $16 million, suggesting a shift in investor focus, a stated.

The turmoil in October 2025 set the backdrop for November’s volatility. A “black swan” event on October 10—sparked by President Trump’s announcement of 100% tariffs on Chinese goods—wiped out $19.37 billion in leveraged positions within a day, marking the largest single-day liquidation in crypto history, according to a

. Bitcoin’s value plunged 18% to $104,782, while altcoins such as and lost between 60% and 80% of their worth, the article reported.

Altcoins continued to face challenges in November, with the top 50 tokens dropping nearly 4% in a single session. Bitcoin’s market share climbed to 60.15%, reflecting a move toward safer assets, Coinpedia said. In contrast, Solana’s ETF attracted $197 million in new investments as some investors looked for alternatives to Bitcoin and Ethereum, according to a

.

Coinbase reported mixed results during the market turbulence. The exchange surpassed Q3 2025 revenue forecasts at $1.9 billion, but outflows from Bitcoin ETFs weighed on institutional interest, according to a

. Meanwhile, REX Shares introduced the ULTI ETF, which aims to generate income from crypto-related stocks, highlighting Wall Street’s changing tactics in the industry, Coinotag noted.

Experts caution that if Bitcoin drops below $106,000, it could trigger an additional $6 billion in liquidations, further accelerating the decline, Coinpedia warned. With ongoing uncertainty around Fed policy and continued ETF outflows, the market remains susceptible to further downturns.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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