Crypto market collapses by almost $1 trillion in a month

The cryptocurrency market suffered another sharp downturn on Wednesday, November 5, that marked a nearly $1 trillion monthly loss in market capitalization, which has dropped from $4.3 trillion recorded in early October to $3.4 trillion at the time of ￰0￱ cryptocurrencies all saw major ￰1￱ ( BTC ), down 8% on the week, tested the critical $100,000 support level, while Ethereum ( ETH ) dropped to $3,300, plummeting 16% over the same ￰2￱ investors also pulled $1.15 billion from Bitcoin ETFs last week, signaling waning sentiment among traditional institutions, which were the key driver behind Bitcoin’s rally to $126,000 last ￰3￱ market cap.) November 5, 2025 “Even with the pullback Bitcoin is up 300% since BlackRock filed for an ETF 30 months ago.

That’s nearly 80% annualized. Relax,” wrote ￰4￱ implication seems to be that the current downturn is an overreaction driven by technical factors and leverage, not a fundamental issue. Namely, as crypto is hypersensitive to technical changes, minor shocks can easily translate into major drawdowns. Still, while the analyst may be optimistic, the downward trajectory has sparked fears of another so-called crypto winter, or a prolonged bearish ￰5￱ instance, some forecasts , such as those by analyst Ali Martinez, warn that Ethereum could drop to as low as $1,700 if it fails to break past $4,000.

The worst-case scenario: Ethereum $ETH fails to reclaim $4,000, breaks through $3,800 support, and drops to $2,400 or $1,700. pic. twitter. com/oKK5VbVRd0 — Ali (@ali_charts) November 4, 2025 The anxiety is emphasized by other markets, such as the ongoing tech selloff that saw Palantir (NASDAQ: PLTR ) dropping 8% despite strong earnings, as well as the S&P 500’s 1.2% dip amid AI-driven valuation ￰6￱ image via Shutterstock