Crypto Market Down 3% Amidst Fed Rate Cut Uncertainty

The crypto market declined over 3% today due to profit-taking, spiking liquidations, and Federal Reserve signals of delaying interest rate cuts. Notable impacts include over $1.15 billion withdrawn from U.S. Bitcoin ETFs and Bitcoin falling under $108,000.

In a notable downturn, the cryptocurrency market experienced a fall of over 3% on November 3, 2025, due to profit-taking and heightened liquidations following U.S. Federal Reserve announcements.

Federal Reserve’s statements are impacting crypto markets, reducing liquidity, and increasing sales. Investor sentiment has softened, leading to a marked decline in cryptocurrency asset values.

“Another cut in December isn’t a foregone conclusion,”

resulting in a stronger U.S. dollar and cooling crypto investor sentiment. Large outflows from Bitcoin ETFs managed by significant financial entities like BlackRock and ARK Invest were observed.

Immediate effects include a notable $1.15 billion withdrawal from Bitcoin ETFs in the U.S. and $400 million in liquidations, primarily affecting Bitcoin and Ethereum. Market capitalization decreased by approximately $74 billion, heightening caution among investors.

The market reaction has been pronounced, as liquidity tightens across crypto assets. Heightened caution and ETF outflows indicated a shift towards safer investments like Bitcoin, which saw increased dominance due to these conditions. For more on this, see Crypto Market Declines 3% Due to Fed Rate Cut Speculations.

Potential outcomes hinge on financial and regulatory shifts, with past trends suggesting further liquidity strains could amplify market volatility. Data-backed historical analysis shows similar patterns; however, current pressures may signal new trends.