Bitcoin plunged more than 20%! 430,000 people liquidated their positions, and the cryptocurrency market was "wailing"

Nakamoto 2025-11-5 21:51 63014人围观 BTC

The full text has a total of 1932 words and takes about 5 minutes to read. A Beijing Business Daily reporter combed through CoinGecko data and found that this round of decline is also the first time since May 2025 that Bitcoin has fallen below the US$100,

The full text has a total of 1932 words ,read It takes about 5 minutes to read

A Beijing Business Daily reporter combed through CoinGecko data and found that this round of decline is also the first time since May 2025 that Bitcoin has fallen below the US$100,000 mark.

Beijing Business Daily reporter丨Liao Meng

The cryptocurrency market is experiencing another plunge, with currencies with the highest market capitalization falling sharply. On November 5, data from the global currency price website CoinGecko showed that the cryptocurrency market plummeted across the board, with Bitcoin once falling below $100,000 and as low as $99,075.89. Ethereum once fell by more than 15% in 24 hours, approaching the $3,000 mark. Some analysts pointed out that this round of Bitcoin's plunge is the result of the cooling of market sentiment and the brakes on leverage. Only when the leverage clean-up comes to an end and the pressure of capital outflows eases, can market sentiment be gradually restored.

Bitcoin falls below $100,000 mark

On the morning of November 5, Bitcoin plummeted, and the cryptocurrency market was "wailing". Bitcoin dropped to as low as $99,075.89, a drop of more than 20% from the all-time high of $126,080 set on October 6. ； Ethereum fell first, falling nearly 35% from its all-time high price of $4,946.05 set on August 24. Niche cryptocurrencies with top market capitalizations such as Ripple and Binance Coin also showed declines of varying magnitudes.

After entering the afternoon, Bitcoin reversed its early losses and narrowed its losses. As of 17:55 on November 5, Bitcoin was trading at $101,905, a 24-hour drop of 1.7%. ； Ethereum was trading at $3,307.12, a 24-hour drop of 5.4%.

A Beijing Business Daily reporter combed through CoinGecko data and found that this round of decline is also the first time since May 2025 that Bitcoin has fallen below the US$100,000 mark. Since October, the cryptocurrency market has been subject to frequent changes. After hitting the all-time high price of US$126,080 on October 6, Bitcoin has fallen significantly. On October 11, Bitcoin's daily amplitude exceeded 20%, falling from US$120,000 to just above the US$100,000 mark, causing an uproar. After entering November, Bitcoin continued to fall.

As for the reasons for this round of Bitcoin's plunge, Yu Jianing, co-chairman of the China Communications Industry Association's Blockchain Committee, pointed out that this is the result of the cooling of market sentiment and the brakes on leverage. On the macro side, U.S. stocks closed on Tuesday with the Dow Jones Industrial Average down about 0.53%, the S&P down 1.17%, the Nasdaq Composite down 2%, Tesla down 5%, and Nvidia down nearly 4%, indicating an overall downgrade in risk appetite. The continuous decline of U.S. stocks and the rising risk aversion of investors have caused the entire risk asset system to withdraw funds. As a highly volatile product, digital assets are often the first to bear the brunt.

Yu Jianing said that emotionally, the crypto panic index has reached 20, a new low in the past six months, and funds will naturally withdraw from more volatile varieties first. In particular, the U.S. stock market has experienced a significant decline and the market's confidence in highly valued assets has been shaken. At the same time, the capital inflow side of the digital asset market has shrunk significantly, and the continuous net outflows of spot ETFs have also weakened the support for prices. Since mid-October, Bitcoin spot ETFs and Ethereum spot ETFs have mostly seen net outflows.

Over 10 billion funds liquidated

From the perspective of external factors, changes in Federal Reserve policy and the U.S. government “shutdown” have exacerbated the uncertainty of the cryptocurrency market. On October 29, local time, the Federal Reserve announced that it would lower the target range of the federal funds rate by 25 basis points to a level between 3.75% and 4%. This is the second time the Federal Reserve has cut interest rates this year.

According to CCTV News, as of midnight local time on November 4, the "shutdown" of the US federal government has entered its 36th day, tying the 35-day "shutdown" record set by US President Trump during his previous term. With the Senate rejecting the temporary appropriation bill for the 14th time, this "shutdown" will continue, setting a new record. This has also made the market more worried about whether the Federal Reserve will cut interest rates for the third consecutive time at its December interest rate meeting.

For the cryptocurrency market, the more direct impact comes from the leverage chain and capital side. According to Coinglass data, in the last 24 hours as of November 5, a total of 438,736 people around the world had their positions liquidated. The total liquidation amount was US$1.719 billion, approximately RMB 12.3 billion. The proportion of long-term liquidation accounted for 76%. The largest single transaction appeared in Hyperliquid's ETH-USD, with a scale of US$26.0635 million.

Image source: Coinglass

“This is a typical chain reaction in the cryptocurrency market of price collapse, insufficient margin, passive liquidation, and further price declines. ”Yu Jianing explained.

Yu Jianing said that overall, the current Bitcoin plunge is more like a concentrated adjustment under tight liquidity. Only when the leverage clean-up comes to an end and the pressure of capital outflows eases, will market sentiment be gradually restored. The short-term impact paths mainly come from three sources, including U.S. stock risk appetite, marginal changes in global liquidity and U.S. dollar interest rate expectations, as well as whether capital flows and trading activity within the digital asset market pick up.

It is worth mentioning that domestic cryptocurrency trading has previously been clearly defined as illegal financial activities. ‌Pan Gongsheng, Governor of the People's Bank of China, recently emphasized again at the 2025 Financial Street Forum Annual Meeting that since 2017, the People's Bank of China, together with relevant departments, has issued a number of policy documents to prevent and deal with the risks of speculation in domestic virtual currency transactions. These policy documents are still valid. In the next step, the People's Bank of China will continue to work with law enforcement agencies to crack down on the operation and speculation of domestic virtual currencies and maintain economic and financial order.

Yu Jianing reminded that for investors, it is important to remember that digital assets are still relatively high-risk investment assets. The rise and fall of asset prices and the speed are significantly different from traditional assets. The equity mechanism and technical support behind them are significantly different from traditional investment assets. Investors must realize that the emotional cycle of the digital asset market is very short. Often when optimism is the strongest and transactions are the most active, risks are also accumulating rapidly.