Bitcoin fell below $106,000 on Monday, November 3, 2025, as cryptocurrency markets lost nearly $182 billion in value due to uncertainty over the Federal Reserve's December interest rate decision. The plunge, which erased gains from an October crash recovery, also triggered over $1 billion in leveraged position liquidations. Altcoins like Ethereum and Solana tumbled 6% to 10%, amid a reported $128 million exploit on the Balancer DeFi protocol.
The cryptocurrency market experienced a sharp downturn on Monday, with Bitcoin sliding more than 4% to a low of $105,500 before recovering slightly to around $107,149. This marked a reversal of the post-October 10 crash bounce, bringing Bitcoin 8% lower over the past week and about 15% below its all-time high of $126,198 set on October 7. The total crypto market capitalization dipped nearly 5%, shedding approximately $182 billion to reach $3.6 trillion, while trading volume surged 57% to $153 billion.
Key triggers included Federal Reserve Chair Jerome Powell's comments last week, signaling that a December rate cut was not assured. Market expectations for the cut plummeted from 96% before the FOMC meeting to less than 70% afterward, dampening hopes for looser financial conditions. Simon Peters, a crypto analyst at eToro, noted, “This dropped drastically to less than 70% chance,” highlighting the shift in investor sentiment.
Compounding the pressure was a security breach on Balancer, a DeFi protocol, where an exploit led to losses of about $128 million across multiple chains. Balancer confirmed it was investigating the issue with high priority. Additionally, U.S. Bitcoin spot ETFs saw outflows of $192 million on Friday, with the iShares Bitcoin Trust (IBIT) leading at $149 million. Ethereum spot ETFs recorded $98 million in outflows.
The sell-off rippled through derivatives markets, liquidating over $1 billion across 303,000 positions, per CoinGlass data. Ethereum dropped 7% to below $3,600, while Solana, BNB, and others fell 8% to 10%. Despite the gloom, optimism persists: Fundstrat's Tom Lee forecasted Bitcoin reaching $200,000 and Ethereum $7,000 by year-end, citing stabilizing fundamentals. Upcoming U.S. employment data on Wednesday could bolster rate cut expectations and restore risk-on sentiment, Peters added.
