Risk appetite weakened through early November, and the shift carried into crypto with speed. The market value of digital assets moved to about $3.45 trillion, the Fear and Greed Index slipped to 20, and liquidations cleared more than $2 billion in a day. Stressed positioning shifts the mix of liquidity providers and slows the pace at which spreads tighten, so rebounds that start on thin books often depend on fresh cash rather than mechanical squeezes, and the difference shows up in how quickly quotes refill across venues and time zones. Macro Pressures and Cross-Asset Links During the break, Bitcoin slipped under $100,000 for the first time since June and finished well below the late-October high, while Ethereum fell below $3,100 and other large caps swung through wider intraday ranges, a sequence consistent with prior deleveraging phases in which basis compresses, funding resets toward neutral or negative, and forced exits carry prices through levels where resting bids are sparse. Bitcoin Price (Source: CoinMarketCap) Policy communication from Federal Reserve officials leaned against a fast easing cycle while inflation is still up, which lifted rate expectations relative to what many traders had penciled in after the autumn cut. When the path for policy tilts toward patience, long-duration exposures lose some appeal, credit spreads stop narrowing, and dealers run tighter inventory limits. Crypto tends to feel that environment because dollar funding conditions and equity volatility shape how much balance sheet is available to carry risk. When both growth stocks and crypto move lower at the same time, hedges migrate into listed instruments first, and cash selling follows after liquidity thins. That sequence usually increases the chance of price breaks during handoffs between time zones. How Structure Turned Stress Into Liquidations Leverage was the accelerant: open interest stepped down as long positions hit margin limits, and the first wave of forced selling pushed prices into levels where resting bids were scarce. Once those thresholds gave way, spreads widened, makers reduced size at the top of the book, and the next wave of stops triggered. The process did not point to a change in protocol utility. It pointed to position management under pressure. Stablecoin flows tracked the same rhythm. Creations slowed ahead of the break, and redemptions increased into the move, which left fewer spot bids to absorb forced sales. Basis and funding drifted toward neutral and then negative in places, which told a simple story about leverage coming out of the system. When those measures normalize alongside rising spot volume, reversals tend to last longer; when the indicators diverge, rallies fade within a day. I remember watching bitcoin crash from $4,500 to $3,000 in 2017 after China banned exchanges. Sitting in my living room, sweating, watching it tumble, thinking: is crypto dead? This is nothing, guys. Relax. pic.twitter.com/5LKZU5ZU8e — david (@dxvid) November 5, 2025 What Would Indicate Repair From Here Start with the dollar and rates , because a softer dollar and calmer equity tape often precede better crypto depth. If front-end rate expectations ease and credit stabilizes, dealers usually rebuild inventories and quotes tighten more quickly after shocks. That backdrop lowers the chance of fresh price gaps during headline windows. Then look at cash indicators inside crypto, like a steady turn in stablecoin net issuance, suggesting fresh settlement capacity for spot demand. On-chain loss patterns and the transfer behavior of larger, older wallets also offer a cleaner read on stress. When their exchange-bound flows recede, forced sales usually fade and close stabilizes. If those cohorts keep sending to exchanges, pressure often lingers even as headlines improve, and the combination with funding, depth, and spot demand then shows whether fear is genuinely easing. The post Fear Takes the Wheel: What Pushed Bitcoin Below $100k and Sparked a Multi‑Billion‑Dollar Liquidation Storm? appeared first on Cryptonews .
