Sharp Drop in Price
Bitcoin has plunged sharply from its October peak (around $126K) to the low $80K range.This marks a ~30% decline in a short time.
The drop has erased almost all of Bitcoin’s gains for 2025.
Massive Liquidations & Leverage Unwinding
There was a huge wave of long-position liquidations.
On November 3 alone, more than $400 million in leveraged long positions were liquidated, impacting over 162,000 traders.
Over $1.9 billion of long positions were reportedly wiped out during a very rapid sell-off.
ETFs Outflows
BTC Exchange-Traded Funds (ETFs) have seen significant outflows, removing a lot of institutional buying pressure.
For example, over $1.15 billion was withdrawn in a recent week.
Macro Risks — Interest Rates & Economic Data
Stronger-than-expected U.S. economic data (especially labor/services) has reduced confidence that the Fed will cut interest rates aggressively, making rate-sensitive assets less risky compared to crypto.
Higher rates and uncertainty are pushing investors out of speculative assets.
Liquidity Crunch
Because of thin liquidity, when forced selling began, algos and leveraged trades accelerated the downward spiral — creating a feedback loop. The Economic Times
In other words: once the first wave of liquidations started, it became self-reinforcing. The Economic Time.
Profit-Taking & Whale Selling
Large holders (“whales”) and long-term holders have started to take profits, which sends a psychological signal to the market. NewsBlock+2Cryptohopper+2
According to some data, long-term holders moved a very large amount of BTC — indicating they may not be as confident about further near-term gains. Cryptohopper
Technical Breakdown
Bitcoin has broken through some key technical support levels, including its 200-day moving average. Wedbush Investor
The price has also dropped below the 2025 realized average cost basis (~$103,200), meaning many 2025 buyers are now at a loss. CoinDesk
Sentiment Weakness
Investor sentiment has soured, with risk-off mood across broader markets. Reuters
Some see the sell-off as not just a temporary correction but a mechanical deleveraging process. Reddit
Big Picture Take
This decline seems driven not just by a fundamental crash, but by a forced unwind of leveraged bets + profit-taking + ETF outflows + macro risks.
The move is painful, especially for leveraged traders, but some analysts consider it a healthy correction — a “system cleanse” rather than full collapse.
Key near-term risk levels to watch: $75K–$80K (if selling continues) per some commentators.
BTC93,637.48+1.05%
