Bitcoin experienced a significant downturn on November 3, 2025, falling to $107,645 with a 2.89% daily decline, contributing to a $120 billion contraction in the global cryptocurrency market valuation within a single day. This extended the weakness seen at the end of October, where Bitcoin had previously reached highs near $116,000 before being rejected, leading to volatility influenced by external factors like the US Federal Reserve's 25 bps rate cut and US-China trade developments.
Ethereum followed with a sharp drop to $3,706, recording a 4.59% decline, while other major altcoins faced broad selling pressure. XRP traded at $2.40 after a 4.60% fall, BNB slid 6.70% to $1,013, Solana dropped 5.62% to $175.24, and Dogecoin slipped 6.87% to $0.1738. Chainlink, Cardano, and others also saw declines of over 5%, reflecting a market-wide reduction in exposure from leveraged traders and algorithmic funds.
Despite the Trump administration reiterating its supportive stance on digital assets and signaling openness to regulatory clarity to foster American leadership in blockchain innovation, markets continued sliding. Analysts noted that traders reacted more to short-term risk sentiment than policy signals, with the downturn testing sentiment amid macro uncertainty. However, long-term fundamentals remain intact, supported by rising institutional allocations and venture investment into blockchain infrastructure, tokenization platforms, and DeFi protocols.
Market participants highlighted that such pullbacks are common and could offer accumulation opportunities for long-term investors, with the pro-innovation tone from Washington potentially setting the stage for capital inflows once stability returns. Bitcoin's market cap fell below $2.150 trillion, while its dominance increased to 58.3%, indicating a sharper impact on altcoins.
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