Crypto Market Dips as ETFs See Big Outflows and Traders Get Liquidated

The crypto market took a hard hit this week as Bitcoin (BTC) dropped below $100,000, marking its lowest point since June. This marks a 20% fall from its recent all-time high just a month ago, pushing Bitcoin close to bear market territory.

One major reason for this drop is that long-term Bitcoin holders have sold nearly 400,000 BTC in the past month. That’s around $45 billion worth of Bitcoin leaving wallets, according to recent data.

Institutional investors are also pulling back. On November 4, spot Bitcoin ETFs saw net outflows of $577 million. This was the fifth day in a row that investors pulled money out of these funds. Ethereum ETFs weren’t spared either, with $219 million in redemptions over the same period. Combined, over $800 million has been withdrawn from Bitcoin and Ethereum ETF products recently.

Ethereum (ETH) has also taken a hit, falling below $3,400 and wiping out all the gains it made earlier in 2025.

Another big issue? Liquidations. Overleveraged crypto traders—those who borrowed too much to invest—are getting wiped out as prices fall. In the last 24 hours alone, more than $1.7 billion was liquidated, with $1.2 billion coming from long positions (bets that prices would go up).

Investor sentiment is also taking a nosedive. The Crypto Fear & Greed Index has dropped into the “extreme fear” zone, showing just how nervous traders are right now.

But it’s not just crypto that’s struggling—markets across the board saw declines today. Brief recoveries were quickly sold off as investors took profits. Analysts say it’s mostly widespread profit-taking and not necessarily a sign of deeper trouble. In fact, they point out that overall market conditions are still strong: interest rate cuts have started, financial regulations are easing, company earnings are up more than 10% year-over-year, and the AI sector is still booming.

Some traders remain optimistic. A crypto analyst known as Astronomer believes Bitcoin is currently trading in a sideways range and could soon bounce back. He sees $112,000 as a likely target if BTC breaks out to the upside.

Why This Matters

This recent sell-off shows how volatile the crypto market can be. Even with strong long-term fundamentals like growing adoption and institutional interest, price swings can be sharp and sudden. It’s a real test for investor patience and confidence.

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