Crypto carnage: Bitcoin plunges 7% to briefly slip below $100,000; altcoin tank up to 16%
The digital asset class was hammered hard as Bitcoin, the oldest and largest crypto currency tumbled more than 7 per cent to briefly slip below the $100,000 mark.
- Nov 5, 2025,
- Updated Nov 5, 2025 11:30 AM IST
Crypto market was under severe selling pressure on Wednesday tracking the footsteps of the equity market, mostly the tech-heavy Nasdaq. The digital asset class was hammered hard as Bitcoin, the oldest and largest crypto currency tumbled more than 7 per cent to briefly slip below the $100,000 mark. However, it recovered marginally to $102,000-level, still showing a 4.5-5 per cent fall.
Its biggest peer, Ethereum also tumbled nearly 16 per cent to $3,060-levels in the last 24-hours, the data from Coinmarketcap suggested. Ethereum has cracked more than 38 per cent from its all time high at $4,953.73, hit 2 months ago, wiping out all the gains of 2025. Similarly, Bitcoin has weakened nearly 22 per cent from its peak hit a month ago, entering into bear-grip.
According to the market experts, multiple key forces are underpinning the sell-off in the crypto market. The rising geopolitical tensions and signs of a global risk-off rotation have undermined investor appetite for digital assets on the macroeconomic front. Besides this, the waning institutional demand and risk-off sentiments is jittering the crypto tokens further.
"The crypto market is showing signs of recovery as Bitcoin stabilizes above $102,000 after testing the support at $99,000. We could expect a trend reversal from these levels. For investors, such market downturns become attractive entry points. Historically, such bull market cycles have seen steeper corrections before a rally resumes," said Edul Patel, CEO of Mudrex.
During the 2017 rally, Bitcoin saw six major corrections of 30–40 per cent before reaching $20,000 for the first time. Looking ahead, a sustained move above the $107,000–$108,000 zone would confirm renewed bullish momentum, giving bulls the strength to take control. On the downside, $97,000 remains a strong support level to watch, Patel noted.
The total market capitalization of the crypto market was down nearly 5 per cent to $3.39 trillion in the last 24 hours, the data from Coinmarketcap suggests. The trading volumes jumped more than 55 per cent as cryptos worth $315 billion exchanged hands during the reported period. The widely watched Fear & Greed index stood at 20, hinting at fear in the digital token market.
Selling pressure quickened as ETF outflows and long-term holder distributions met thin weekend liquidity. On-chain trends point to older coins moving to exchanges even while derivatives positioning remains light. This is a mix that suggests the latest leg lower is being driven more by spot flows than leverage, said Vikram Subburaj, CEO, Giottus.
"Macro conditions remain unsupportive. The US Fed’s cautious stance on further rate cuts has dampened risk appetite. Net-net, the tape suggests a controlled correction rather than full capitulation, with underlying market structure largely intact despite weaker breadth," he added.
The overall sentiment remains fragile as the increased leverage in crypto trades has also amplified the downside risks. Once prices begin to fall, forced selling through margin calls and liquidations can accelerate the downturn, leading to a cascading effect. Experts warn of a possible 'Crypto Crash 2.0' scenario as the digital-asset downturn intersects with broader economic turbulence.
Crypto market was under severe selling pressure on Wednesday tracking the footsteps of the equity market, mostly the tech-heavy Nasdaq. The digital asset class was hammered hard as Bitcoin, the oldest and largest crypto currency tumbled more than 7 per cent to briefly slip below the $100,000 mark. However, it recovered marginally to $102,000-level, still showing a 4.5-5 per cent fall.
Its biggest peer, Ethereum also tumbled nearly 16 per cent to $3,060-levels in the last 24-hours, the data from Coinmarketcap suggested. Ethereum has cracked more than 38 per cent from its all time high at $4,953.73, hit 2 months ago, wiping out all the gains of 2025. Similarly, Bitcoin has weakened nearly 22 per cent from its peak hit a month ago, entering into bear-grip.
According to the market experts, multiple key forces are underpinning the sell-off in the crypto market. The rising geopolitical tensions and signs of a global risk-off rotation have undermined investor appetite for digital assets on the macroeconomic front. Besides this, the waning institutional demand and risk-off sentiments is jittering the crypto tokens further.
"The crypto market is showing signs of recovery as Bitcoin stabilizes above $102,000 after testing the support at $99,000. We could expect a trend reversal from these levels. For investors, such market downturns become attractive entry points. Historically, such bull market cycles have seen steeper corrections before a rally resumes," said Edul Patel, CEO of Mudrex.
During the 2017 rally, Bitcoin saw six major corrections of 30–40 per cent before reaching $20,000 for the first time. Looking ahead, a sustained move above the $107,000–$108,000 zone would confirm renewed bullish momentum, giving bulls the strength to take control. On the downside, $97,000 remains a strong support level to watch, Patel noted.
The total market capitalization of the crypto market was down nearly 5 per cent to $3.39 trillion in the last 24 hours, the data from Coinmarketcap suggests. The trading volumes jumped more than 55 per cent as cryptos worth $315 billion exchanged hands during the reported period. The widely watched Fear & Greed index stood at 20, hinting at fear in the digital token market.
Selling pressure quickened as ETF outflows and long-term holder distributions met thin weekend liquidity. On-chain trends point to older coins moving to exchanges even while derivatives positioning remains light. This is a mix that suggests the latest leg lower is being driven more by spot flows than leverage, said Vikram Subburaj, CEO, Giottus.
"Macro conditions remain unsupportive. The US Fed’s cautious stance on further rate cuts has dampened risk appetite. Net-net, the tape suggests a controlled correction rather than full capitulation, with underlying market structure largely intact despite weaker breadth," he added.
The overall sentiment remains fragile as the increased leverage in crypto trades has also amplified the downside risks. Once prices begin to fall, forced selling through margin calls and liquidations can accelerate the downturn, leading to a cascading effect. Experts warn of a possible 'Crypto Crash 2.0' scenario as the digital-asset downturn intersects with broader economic turbulence.