Crypto Market Crash: Here’s Why Bitcoin, ETH, XRP, BNB, SOL Falling Sharply Today

Today’s crypto market crash saw the global market cap tumble back to a 5-month low at $3.45 trillion. Bitcoin and Ethereum prices are now down 18% and 27% in a month, while investors haven’t even recovered from the bloodbath last month.

Macro, technical, and fundamental factors wreaked havoc on stocks and crypto markets, causing $830 billion loss to investors. Moreover, the Crypto Market Fear & Greed Index recorded a sharp drop in the sentiment from 42 (fear) to 21 (extreme fear) in just a day. This indicates bearish sentiment continues among investors.

5 Reasons Behind Crypto Market Crash

Bitcoin price today fell 4% to $103,650 lows in the last few hours. Other the other hand, ETH price tumbles 3-month low of $3,461, and XRP corrects 6% to $2.25. The crypto market crash sees no signs of slowing as experts predict further free fall in prices.

Other top altcoins BNB, Solana (SOL), Cardano (ADA), Hyperliquid (HYPE), Dogecoin (DOGE), and Aster also tumbled massively.

1. Macro Shocks Amid Government Shutdown

Traders have turned more cautious ahead of the U.S. Supreme Court’s decision on Trump tariffs on Wednesday. President Donald Trump said the United States could become a third-world country without tariffs if the court sided with the group of US states calling the tariffs illegal.

🚨 BREAKING: Treasury Sec. SCOTT BESSENT will be sitting in the FRONT ROW at the Supreme Court as they consider abolishing President Trump's sweeping tariffs

"I am there to emphasize that this is an economic EMERGENCY. National security is economic security. Economic security is… pic.twitter.com/ZDPWtdkrJe

— Eric Daugherty (@EricLDaugh) November 4, 2025

ISM US Manufacturing PMI data by the Institute for Supply Management on Monday came in lower at 48.7 for October, dropping from 49.1 in September and below market forecasts of 49.5. This indicates an 8th consecutive month of contraction in the manufacturing sector, spotlighting economic weakness amid the prolonged government shutdown.

In addition, three Federal Reserve officials on Monday expressed doubts about a Fed rate cut next month, warning about inflation risks despite a softening labor market. This is in line with Fed Chair Jerome Powell’s hawkish stance that fueled crypto market crash concerns since last week.

As a result, the US dollar index (DXY) has jumped above 100 for the first time in 6 months. Also, the 10-year Treasury yield stays near 4.1%. Notably, Bitcoin price usually moves in the opposite direction to the DXY and US treasury yields.

2. Crypto Market Crash as Whales Keep Profit Booking

Whales and long-term holders continue massive profit booking. Long-term holders have offloaded nearly $50 billion in BTC since October, as per on-chain data.

The $130 million Balancer hack on Monday and the Staked Stream USD (XUSD) depeg on Tuesday have worsened whale sentiment. CryptoQuant data suggests confidence and capital will take longer to recover.

Lookonchain reported that whales are shorting ASTER, ETH, DOGE, XRP, and PEPE. Bitcoin OGs are dumping BTC in the last few weeks. Also, whale Owen Gunden has deposited another 1,289 BTC to Kraken today, after 483.3 BTC worth $53 million on Monday, expanding selloffs to $364.5 million in the last 2 weeks.

3. Bitcoin and Ethereum ETFs Outflow Signals Institutional Investors Turn Bearish

Spot Bitcoin ETFs recorded $187 million in net outflows, marking the 4th consecutive day of selling by institutional investors, according to SoSo Value data. BlackRock’s IBIT saw $186.5 million in outflows, with bearish sentiment causing a broader crypto market crash.

Meanwhile, spot Ethereum ETFs saw $136 million in net outflows, the 4th consecutive day of outflows. BlackRock’s ETHA led with $81.7 million. In contrast, spot Solana ETFs posted $70.05 million in net inflows, marking a fifth consecutive day of inflows.

Meanwhile, CoinShares crypto fund flows report revealed institutional investors are selling, with a $360 million outflow in a week. Bitcoin ETFs globally saw significant outflows, amounting to $946 million. Moreover, XRP inflows further slowed to $43.2 million, as compared to $84,3 million in the prior week.

4. Hindenburg Omen Jitters Turn Real

As CoinGape reported on Monday, the technical indicator Hindenburg Omen flashed a warning sign twice last month. With the crypto market moving in correlation with the stock market, traders and institutions are cautious about a deeper Bitcoin and crypto market crash.

Expert Tom McClellan claimed it “tends to matter more when we see a cluster of them.” It accurately predicted the 1987 Black Monday and the 2008 Financial Crisis. Notably, stock markets globally are crashing today, with the US stock market set to open more than 1% red.

5. High-Leverage Crypto Market Liquidations

Coinglass data indicates over $1.5 billion in crypto liquidations, with 329K traders liquidated in the last 24 hours. The largest single liquidation order of BTCUSDT valued at $47.87 million happened on crypto exchange HTX.

Over $1.3 billion long and $200 million short positions were liquidated, with BTC, ETH, SOL, XRP, HYPE, DOGE, ASTER, BNB, PUMP, and LINK leading the liquidations. In the last 12 hours, $500 million in longs were liquidated, causing the crypto market crash.