Here is Why the Crypto Market Erased Over $120 Billion Today

As Bitcoin (BTC), Ethereum ($ETH), $XRP, and Solana ($SOL) capitulated on November 5, 2026, the crypto market capitalization flash-crashed by more than $120 billion.

The crypto market cap fell to $2.57 trillion at the time of reporting, down from $2.69 trillion on Wednesday. As a result, the total cryptocurrency market cap declined by roughly 4.46%, according to data Coinpedia analyzed from CoinMarketCap.

Crypto market cap change on November 5. Source: CoinMarketCap

The free-fall was driven by a significant selloff in top crypto assets. At the time of writing, Bitcoin, $ETH, $XRP, and $SOL had shed 4.46%, 6.68%, 4.45%, and 5.9%, respectively.

Top 7 crypto assets by market cap on Thursday. Source: CoinMarketCap

Why is the Crypto Market Down Today?

The cryptocurrency market faced heightened selling pressure following renewed geopolitical tensions amid a broader bear market in the artificial intelligence (AI) stocks.

Over the past 24 hours, the Nasdaq-100 Index (NDX), an equity benchmark tracking the 100 largest non-financial companies listed on the Nasdaq Stock Market, plummeted to its lowest in 196 days.

NASDAQ 100 Index. Source: TradingView

As such, the cryptocurrency market faced increased selling pressure catalyzed by broader macro headwinds.

Most importantly, the crypto market experienced a long squeeze, a situation in which falling prices force long holders to sell, thereby accelerating the decline. Over the past 24 hours, the cryptocurrencies’ derivatives had recorded around $1.06 billion in total liquidations, with $934.73 million involving long trades, as per metrics from CoinGlass.

Cryptocurrency liquidation heat map on Thursday. Source: CoinGlass

What’s Next for Cryptocurrencies?

Even though the cryptocurrency market faced increased selloff fueled by a possible AI bubble burst, a possible bull run is expected before the end of this year.

Crypto analyst Ali Martinez believes the recent downtrend marked the ‘disbelief’ part of the bull cycle, thus signaling a potential recovery in the near term.