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Bitcoin News Update: Major Institutions Withdraw, Causing $400M in Crypto Sell-Offs Amid Growing Fed Uncertainty

Bitcoin News Update: Major Institutions Withdraw, Causing $400M in Crypto Sell-Offs Amid Growing Fed Uncertainty

Bitget-RWA2025/11/03 16:44
By:Bitget-RWA

- Cryptocurrency markets crashed on Nov 3, 2025, with Bitcoin/Ethereum falling over 4%, triggering $400M+ liquidations amid Fed hesitation and ETF outflows. - Fed Chair Powell's cautious stance on rate cuts and $1.15B Bitcoin ETF outflows intensified selling pressure, while altcoins dropped nearly 4% in 24 hours. - Bitcoin's dominance rose to 60.15% as traders fled volatile assets, with institutional withdrawals from BlackRock/ARK/Fidelity signaling broader risk aversion. - Analysts warned $106,000 BTC sup

The cryptocurrency sector experienced a widespread downturn on November 3, 2025, as

and both slid by more than 4%, resulting in liquidations exceeding $400 million and heightening worries over macroeconomic challenges, as reported by . This decline was attributed to a combination of the U.S. Federal Reserve’s hawkish approach, persistent outflows from Bitcoin exchange-traded funds (ETFs), and increased volatility among alternative cryptocurrencies.

The Federal Reserve’s reluctance to cut rates was a major factor. Following a 25-basis-point reduction in October, Fed Chair Jerome Powell indicated that another cut in December was not assured, which strengthened the U.S. dollar and reduced risk appetite, according to Coinpedia. The CME FedWatch Tool mirrored this sentiment, showing the likelihood of a December rate cut dropping to 69.3% from previous higher levels, the report stated. Treasury Secretary Scott Bessent also highlighted policy limitations, cautioning that tight monetary policy had already slowed some sectors of the economy, Coinpedia added.

Bitcoin News Update: Major Institutions Withdraw, Causing $400M in Crypto Sell-Offs Amid Growing Fed Uncertainty image 0

Outflows from Bitcoin ETFs further fueled the decline, with $1.15 billion withdrawn in just the previous week, Coinpedia reported. Leading asset managers such as

, ARK Invest, and Fidelity experienced notable redemptions, signaling a pullback by institutional players, the report noted. The sell-off intensified as Bitcoin’s price dropped below $107,500, causing nearly $400 million in long positions to be liquidated. Analysts cautioned that if Bitcoin fell under $106,000, it could trigger an additional $6 billion in liquidations, worsening the slump.

Alternative cryptocurrencies performed even worse, with the top 50 tokens losing almost 4% in a single day, Coinpedia reported. Ethereum declined 4.4% to $3,734, while

and dropped by 3.38% and 4.8%, respectively. Bitcoin’s share of the market rose to 60.15% as investors sought safer assets. The broader sell-off also reflected wider market anxieties tied to U.S.-China trade issues and global economic instability, according to , though the Yahoo report noted that recent diplomatic progress between the two countries had briefly steadied prices earlier in October.

Investor sentiment stayed negative, with the Crypto Fear and Greed Index remaining in the "fear" range at 35, as reported by

. Long-term investors contributed to the downward momentum by selling over 100,000 BTC during October, the Economic Times noted. Additionally, the negative premium on Coinbase—a key indicator of U.S. retail demand—pointed to weak buying interest, the report said.

Despite the ongoing volatility, some market experts continued to express confidence in Bitcoin’s future prospects. Tom Lee from FundStrat Capital maintained his year-end forecast of $200,000 for Bitcoin and $7,000 for Ethereum, according to

, though he emphasized that a period of consolidation would be necessary before any significant rally.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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