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The crypto economy kicked off the second day of the week in a downturn, with bearish sentiment resulting in a 3.2% decline in total market capitalization, dropping to $3.55 trillion.
Bitcoin Leads the Crash, Triggering Massive Liquidations
The crypto economy began the second day of the new week deep in the red, as bearish sentiment swept across the market. According to data from Coingecko, the total crypto market capitalization declined by 3.2% in 24 hours, dropping to $3.55 trillion amid widespread claims of coordinated fear, uncertainty, and doubt (FUD) designed to tank the market.
Bitcoin ( BTC) plummeted sharply, dropping from just above $107,000 to $104,200 in under two hours. This flash crash caused BTC’s market capitalization to slip below $2.1 trillion and triggered the liquidation of $127 million in long bets within a four-hour window. As of 1:55 am EST on Nov. 4, approximately $375 million in BTC long positions had been wiped out.
Altcoins Suffer Heavy Losses
Altcoins were not spared from the selling pressure, with many recording steep 24-hour declines: Ethereum ( ETH) briefly dropped below the $3,500 mark, bringing its seven-day losses to 13.3%. This level was last seen on August 2. ETH’s plunge alone triggered the obliteration of $317 million in long bets over 24 hours. XRP fell from above $2.40 to $2.28, a price level last observed on October 10. BNB, which had touched an all-time high of $1,369 on October 13, suffered heavier losses, tumbling to $952.
The market-wide plunge resulted in the total liquidation of over $1.32 billion in leveraged long and short bets. According to Coinglass data, the largest single liquidation order occurred on HTX, involving a BTC/ USDT pairing valued at $47.87 million.
Industry Warns Against Panic
The market decline prompted prominent figures in the crypto industry to caution users against making rash moves. Binance founder Changpeng Zhao (CZ) publicly stated there was “lots of random FUD in the market” and urged his followers to “learn to verify” news before taking action.
Despite these warnings, the so-called FUD appears to be gaining traction: data on prediction markets like Kalshi and Polymarket now show the chances of BTC dipping below $100,000 exceed 50%. Other analysts predict altcoins will likely drop another 30% against BTC over the coming weeks.
FAQ 🧠
- Why did the crypto market drop sharply? A wave of bearish sentiment and alleged coordinated FUD triggered a 3.2% market cap decline.
- How much did bitcoin fall and what was the impact? BTC dropped to $104,200, causing over $375M in long liquidations.
- Which altcoins were hit hardest in the sell-off? ETH, XRP, and BNB saw steep losses, with ETH triggering $317M in liquidations.
- What are experts saying about the crash? Industry leaders warn against panic and urge users to verify news before reacting.