$BTC 📉 Over 100k u 😱
$ETH 📉 3100 u 😱
$BNB 📉 880 u 😥
On November 4-5, the total market value of cryptocurrencies evaporated by approximately 300 billion USD, BTC fell below 100k u, ETH dropped to 3100 u, and the fear index fell to 21. **Not a systemic collapse, but a combination of multiple factors causing a correction**.
### Core Reasons:
1. **Fed's Hawkish Shift**
Powell stated that a rate cut in December is “not a certainty,” with rate cut expectations dropping from 90% to 63%, the dollar strengthened, and US Treasury yields rose, leading to a sell-off in risk assets. Institutional ETFs saw a net outflow of 600 million last week, whales sold 405,000 BTC, and liquidity tightened sharply.
2. **DeFi Series of Hacking Attacks**
The Balancer protocol lost 116.6 million (the second incident after StreamDeFi), ETH dropped by 9%, and DeFi TVL evaporated by 50 billion, triggering panic selling in altcoins.
3. **Trump's Tariff Escalation**
A 100% tariff increase on China, escalating the trade war, causing a collapse in global risk appetite. Exchange overload triggered ADL, causing some cryptocurrencies to flash crash to nearly zero.
4. **High Leverage Liquidation + Technical Breakdown**
Overheated bulls, BTC fell below 110k support, triggering over 1 billion in liquidations. Altcoins fell by 60% this year, with funds flowing back to BTC, and dominance rising to 55%.
### Outlook:
- **Short-term**: Holding at 104k could rebound to 106-108k; if broken, look down to 99k. Pay attention to the Fed minutes on November 6.
- **Long-term**: After washing out leverage, a healthier market is expected, with Q4 ETF inflows + DeFi recovery likely to drive a rebound.
**Advice**: Stop-loss + diversification, accumulate in fear, DYOR.
> Crypto market norm: a plunge is like a surge; opportunities lie at the end of fear.