Key Points: Bitcoin dropped below $108,000 during Asian trading hours on November 3, 2025, as traders recalibrated expectations following Federal Reserve Chair Jerome Powell's warning that a December rate cut is "not a foregone conclusion." The total crypto market cap fell 3.1% to $3.69 trillion, with over $155 million in derivatives liquidated in 24 hours. Market maker FlowDesk reports clients have "paused adding new risk" as a wait-and-see strategy dominates. Bitcoin dominance has risen to approximately 60% of total crypto market cap, while altcoins struggle with supply in profit dropping to 2022 bear market levels.
Key Facts at a Glance
- Bitcoin Price: $107,734 (down 2.1% in 24 hours)
- Ethereum Price: $3,737 (down 3.8%)
- Total Market Cap: $3.69 trillion (down 3.1%)
- 24-Hour Liquidations: $155 million ($97M longs, $58M shorts)
- Bitcoin Dominance: ~60% of total crypto market
- Bitcoin ETF Outflows: $388 million (largest since August 2025)
- Fed Meeting Impact: December rate cut "not a foregone conclusion"
- Key Support Level: $108K–$109K range
Bitcoin's so-called "Uptober" rally ended with a thud. The world's largest cryptocurrency slipped under $108,000 as Asian markets opened Monday, extending last week's sell-off after Federal Reserve officials pumped the brakes on near-term easing hopes. Traders who rode October's momentum are now facing a harsher reality: rate cuts aren't coming as fast as the market priced in.
Crypto Market Performance Snapshot (November 3, 2025)
| Asset | Price | 24h Change | 30-Day Change |
|---|---|---|---|
| Bitcoin (BTC) | $107,734 | -2.1% | -10% |
| Ethereum (ETH) | $3,737 | -3.8% | -14% |
| XRP | $2.43 | -3.1% | N/A |
What Caused Bitcoin to Drop Below $108K?
Bitcoin fell primarily due to hawkish Federal Reserve messaging and institutional profit-taking.
Fed Chair Jerome Powell stated last week that a December rate cut was "not a foregone conclusion," forcing traders to abandon aggressive dovish bets. This shift strengthened the US dollar and pulled capital away from risk assets. Spot Bitcoin ETFs recorded $388 million in net outflows, marking the largest single-day exodus since August 2025, according to market data. The technical breakdown below $109,500 triggered automated sell orders, accelerating downward momentum. Thin liquidity from Tokyo markets being closed for a holiday amplified price swings during early Asian hours.
Why Are Traders Pulling Back from Crypto Markets?
Market participants have shifted to a defensive wait-and-see posture after elevated October leverage unwound.
Market maker FlowDesk observed that clients have "largely paused adding new risk" following the Fed meeting. Elevated leverage built up through October left long positions vulnerable to forced liquidations as prices declined. FlowDesk noted "elevated put skew and lingering caution despite calmer volatility," indicating traders are actively buying downside protection rather than chasing breakouts. This deleveraging has left many traders "underexposed if the market rebounds," creating cleaner positioning but muted short-term upside participation. Net buying remained focused on fundamentally strong assets like Bitcoin, while Solana-linked tokens lagged significantly.
How Are Derivatives Markets Reflecting Current Sentiment?
Derivatives data reveals persistent fear despite surface-level calm in spot markets.
Approximately $155 million in crypto derivatives were liquidated over the past 24 hours, with $97 million in long positions and $58 million in shorts wiped out, according to CoinGlass data. This split indicates a moderate flush of overleveraged bullish bets rather than broad panic selling. FlowDesk observed traders favoring put buying and call selling, a defensive stance that could present opportunities if spot markets stabilize. "Cheap risk reversals could appeal if spot markets stabilize," FlowDesk stated, adding that volatility will likely "drift lower into year-end."
What Happens If Bitcoin Loses the $108K Support Level?
The $108K–$109K zone represents critical support preventing deeper declines.
Technical analysts point to this range as the last line of defense before more significant losses. Breaking below $108,000 could trigger another wave of automated sell orders and margin calls. However, on-chain metrics suggest underlying strength remains intact. Riya Sehgal, research analyst at Delta Exchange, noted that "Bitcoin's realized cap above $1.1 trillion and stable on-chain activity indicate enduring structural strength ahead of a historically bullish November." Long-term holders have begun light profit-taking, but the pace remains measured rather than panic-driven.
Why Is Bitcoin Dominance Rising While Altcoins Struggle?
Bitcoin's market share has climbed to 60% as investors flee to relative safety within crypto.
Altcoin supply in profit has collapsed to levels not seen since the 2022 bear market and tariff war period. Passive altcoin holders are significantly underperforming Bitcoin this cycle, reflecting a clear market preference for large-cap stability over higher-risk tokens. This divergence intensified after the Fed's hawkish pivot, with capital flowing out of speculative positions and into Bitcoin as a relative safe haven. XRP fell 3.1% despite eight XRP ETFs registering on the DTCC, while Ethereum dropped 3.8% even as liquidation maps suggested potential for a short squeeze.
What Economic Data Could Shift Bitcoin's Direction?
A heavy slate of US economic releases this week will dictate near-term crypto momentum.
JOLTS job openings data arrives Tuesday, ADP private payrolls Wednesday, weekly jobless claims Thursday, and the University of Michigan inflation expectations print Friday. Strong labor market signals would support the Fed's patient stance on rate cuts, likely pressuring risk assets further. Conversely, softer readings could revive December easing hopes and provide relief for crypto. The market has shifted from pricing in a one-way dovish policy path to reacting day-by-day to incoming data. Cross-asset signals remain nuanced, with regional equities attempting to build on tech earnings strength while crypto lags due to leverage overhang.
What Are Whales Doing During This Bitcoin Decline?
Large holders have moved $1.8 billion worth of Bitcoin to exchanges since October 1, signaling potential distribution.
Bitcoin "OGs," or longtime holders, deposited nearly 13,000 BTC (worth $1.48 billion) to major exchanges including Kraken, Binance, Coinbase, and Hyperliquid, according to on-chain tracking. Notably, Owen Gunden transferred 3,265 BTC ($364.5 million) to Kraken since October 21. These massive deposits fuel speculation about coordinated profit-taking as Bitcoin faces increased selling pressure from early investors. The transfers coincide with Bitcoin trading near all-time highs above $110,000 just days earlier, suggesting strategic exits at elevated price levels.
Frequently Asked Questions About Bitcoin's November 2025 Price Action
Will Bitcoin recover above $110K in November 2025?
Recovery depends on upcoming US economic data and Fed policy signals. November historically provides strong seasonal support for Bitcoin, and on-chain metrics show structural resilience despite current weakness. However, continued hawkish Fed messaging or strong labor data could delay any rebound until macroeconomic conditions shift.
What is Bitcoin dominance and why does it matter?
Bitcoin dominance measures Bitcoin's market cap as a percentage of total crypto market cap, currently sitting at approximately 60%. Rising dominance indicates capital flowing from altcoins into Bitcoin, typically signaling risk-off behavior within crypto markets. High dominance often precedes either market bottoms or extended consolidation periods.
How do Bitcoin ETF outflows affect price?
Bitcoin ETF outflows represent institutional investors selling their Bitcoin exposure through regulated exchange-traded products. The $388 million in net outflows recorded recently marked the largest single-day exodus since August 2025, directly removing buy-side demand and contributing to downward price pressure.
What This Means for Crypto Markets
Bitcoin's retreat below $108,000 marks a critical inflection point for crypto markets entering November. The breakdown of "Uptober" momentum and shift toward defensive positioning reflects broader uncertainty about Federal Reserve policy timing. With December rate cut odds fading and institutional money flowing out through ETFs, the path of least resistance appears sideways to lower in the near term.
Yet the market isn't showing signs of capitulation. Deleveraging has cleaned up positioning, creating potential fuel for a move higher if catalysts emerge. Bitcoin dominance at 60% suggests the market is consolidating around the most liquid, established asset rather than chasing speculative plays. This rotation could be healthy if it sets up a more sustainable advance.
The week ahead will be pivotal. US economic data will either validate the Fed's patient stance or crack the door open for December easing. Traders who exited during the recent volatility are watching from the sidelines with dry powder. Spot markets remain calm despite derivative liquidations, suggesting professional participants aren't panicking.
Gold's resilience above $4,000 per ounce despite hawkish Fed commentary shows that macro uncertainty is supporting alternative assets beyond traditional risk markets. If geopolitical tensions persist and US fiscal uncertainty continues, Bitcoin could benefit from similar safe-haven flows that have supported precious metals.
Final Takeaway: Bitcoin's drop below $108,000 on November 3, 2025, reflects fading rate cut optimism after Fed Chair Powell's hawkish messaging, with $388 million in ETF outflows and $155 million in derivatives liquidated. The $108K–$109K support zone remains critical for preventing deeper losses, while upcoming US economic data will determine whether Bitcoin can reclaim bullish momentum or faces further consolidation.
About Spino: Spino delivers real-time crypto market intelligence and research for traders navigating digital asset markets. For more analysis on Bitcoin price trends and macro impacts, visit spino.io.
Sources:
- CoinGlass derivatives liquidation data
- FlowDesk market analysis
- Delta Exchange research (Riya Sehgal)
- Federal Reserve meeting statements
- On-chain whale transaction tracking
- Bitcoin ETF flow data