Major digital currencies experienced a notable downturn on Tuesday, mirroring a broader decline in stock markets. Bitcoin, the leading cryptocurrency, slipped beneath the significant $100,000 mark, a level not observed since early May. Other prominent digital assets such as Ethereum, XRP, and Dogecoin also recorded considerable losses. Despite this market volatility, an analytical firm highlighted that a substantial portion of traders remained optimistic, actively investing during price drops.
Cryptocurrency Markets Face Significant Downturn Amidst Broad Sell-Off
In a dramatic turn of events on Tuesday, November 4, 2025, the cryptocurrency market witnessed a substantial correction. Bitcoin, once trading near its all-time highs just a month prior, plunged below $100,000, settling at $99,477.87 by 8:25 p.m. ET, representing a 7.06% decrease. This sharp decline triggered a ripple effect across the digital asset landscape. Ethereum, another major player, experienced a significant drop of 12.48%, approaching the $3,000 threshold with a recorded price of $3,183.64. XRP and Dogecoin also faced considerable pressure, falling by 8.72% to $2.13 and 6.65% to $0.1579, respectively. Solana, a rising star in the crypto space, was not immune, seeing its value decrease by 9.94% to $150.48.
This market upheaval led to a massive liquidation event, with over $2 billion in positions wiped out within 24 hours, predominantly affecting long positions which accounted for $1.70 billion of the losses. Bitcoin's open interest saw a 6% reduction, while funds tied to Ethereum derivatives plummeted by more than 18%. Paradoxically, data from Binance revealed that over 72% of traders with open Bitcoin positions were anticipating a bullish reversal, suggesting a resilient belief in the asset's recovery potential.
Amidst the widespread losses, a few lesser-known cryptocurrencies defied the trend, posting impressive gains. Momentum (MMT) surged by 319.89% to $2.06, DeAgentAI (AIA) climbed 127.06% to $2.69, and Giggle Fund (GIGGLE) increased by 67.12% to $100.88. However, these individual successes did little to stem the overall market bleed, with the total global cryptocurrency market capitalization shrinking by 6.52% to $3.31 trillion.
The stock market also felt the pressure, with the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite all closing lower. A notable contributor to this decline was Palantir Technologies Inc. (NASDAQ:PLTR), whose shares tumbled by nearly 8% despite reporting robust quarterly results. In other markets, spot gold saw a modest gain of 0.26% to $3,942.97, while the U.S. dollar index reached a three-month high.
Looking ahead, Lacie Zhang, a Research Analyst at Bitget Wallet, offered a near-term forecast for Bitcoin, suggesting it could trade within a range of $94,000 to $118,000. Zhang clarified that the lower end of this range signifies a healthy retracement in line with subdued ETF inflows, while the upper bound represents a cautious recovery below October's high of approximately $125,000. Ethereum is projected to oscillate between $3,000 and $4,400. Furthermore, the on-chain analytics firm Santiment observed an uptick in negative social media sentiment surrounding Bitcoin and Ethereum, a phenomenon historically preceding market bottoms and subsequent relief rallies, reinforcing the idea that confidence in buying dips remains strong among some investors.
The recent market performance underscores the inherent volatility of cryptocurrency investments. While significant downturns can be alarming, the observed tendency of many investors to 'buy the dip' suggests a long-term confidence in the underlying technology and future growth potential of digital assets. This highlights the importance of a well-informed and resilient investment strategy in such dynamic markets. For a journalist or observer, this situation is a stark reminder of the rapid shifts that define the cryptocurrency world, and how narratives of fear and opportunity can coexist, shaping investor behavior in fascinating ways.