Bitcoin Falls To $100K As Global Markets Plunge

November 5: Crypto Market Plunges as Bitcoin Hits 5-Month Low Amid Global Stock Sell-Off

Over the past 24 hours, about $2.09 billion in crypto positions have been liquidated, mostly from long orders, as traders turned cautious after the $19 billion wipeout in October. Bitcoin dropped to its lowest level in five months on Wednesday, briefly breaking below $100,000, as investors reacted to the prolonged U.S. government shutdown and fresh signs of slowing economic growth. Ether led the decline, tumbling over 12% to $3,179. The drop pushed Bitcoin to its weakest level since May, around 20% below the early October peak of over $126,000, as enthusiasm faded and market liquidity thinned.

Liquidations Accelerate

According to data from CoinGlass, roughly $2.09 billion in crypto positions were liquidated in the past 24 hours, with $1.68 billion coming from long positions. While still far below October’s record $19 billion liquidation, traders have become increasingly cautious following that historic crash.

Market Overview

Bitcoin is trading around $101,464, down 4.8%. Ether has fallen 9% to $3,310, while XRP is down 5.3% at $2.22. The total crypto market capitalization declined 4.8% to $3.45 trillion.

Altcoins Under Pressure as Bitcoin Dominance Surges Past 60%

The market structure continues to favor Bitcoin over smaller tokens. Analyst Benjamin Cowen predicts that altcoins could drop another 30% against Bitcoin in the coming weeks, as investors concentrate capital in the largest asset near the $100,000 level. Bitcoin dominance has risen to 60.15% as risk appetite contracts across the market.

Global Stock Markets Extend Losses

In the U.S., equities closed sharply lower on Tuesday after major banks warned of potential corrections. The S&P 500 and Nasdaq recorded their biggest one-day drops since October 10, with the tech sector leading losses as investors reassessed lofty AI-driven valuations. Executives from Morgan Stanley and Goldman Sachs issued bubble warnings, while JPMorgan Chase CEO Jamie Dimon cautioned that a significant correction could occur within six months to two years due to mounting geopolitical tensions.

Longest U.S. Government Shutdown in History Clouds Market Sentiment

The ongoing U.S. government shutdown, driven by congressional gridlock, has now reached 36 days — nearing a record. With official economic data frozen, investors have turned to private indicators such as the upcoming ADP employment report, while closely monitoring remarks from the Federal Reserve amid this “data blackout.”

Sector divergence has become increasingly clear. Technology stocks fell 2.3%, leading declines among the 11 S&P 500 sectors, while financials posted modest gains. Futures trading pointed to further weakness, adding to market uncertainty. Asian equities also tracked Wall Street lower, with the MSCI Asia-Pacific ex-Japan index dropping 0.8% and South Korea’s Kospi plunging 4.1%.

Traders Cite Three Main Pressure Factors

Traders point to three key factors weighing on the crypto market: President Trump’s tough rhetoric toward China, tightening liquidity conditions, and growing doubts that the Federal Reserve will deliver a third rate cut in 2025 as previously expected. Trump’s renewed trade threats toward China — which also contributed to October’s massive liquidation — have further worsened market sentiment.

Potential Positive Signals Ahead

Despite the current downturn, some analysts see opportunities for recovery. Ryan Lee, Chief Analyst at Bitget, believes Bitcoin could retest the $115,000–$120,000 range if macroeconomic conditions improve, while Ether might rebound toward $4,200 on the back of layer-2 development and DeFi ecosystem growth.

He emphasized that key factors to watch include the Fed’s upcoming rate decisions, continuous ETF inflows, and regulatory progress from global bodies such as the SEC, all of which could accelerate crypto’s integration into traditional finance. However, unexpected inflation reports and ongoing geopolitical tensions remain significant risks that could trigger sharp corrections.

Disclaimer: The content above reflects the author’s personal views and does not represent any official position of Cobic News. The information provided is for informational purposes only and should not be considered as investment advice from Cobic News.