Summary
Bitcoin and Ethereum just experienced one of their worst trading days of the year, with Bitcoin dropping over 20% from its early-October peak and officially entering bear market territory. Heavy selling, profit-taking, and large liquidations triggered a sharp reversal across the crypto market, pulling major altcoins down as well. Still, analysts point out that corrections of this size have happened in past bull markets and don’t necessarily signal the end of the longer-term uptrend.
Market Movers
- 📈 ADP Non-Farm Employment Change: Nov 5, 2025
- 📈 ISM Services PMI: Nov 5, 2025
📚 Deep Dive 📚
🚨 Bitcoin & Ethereum Just Had One of Their Worst Days of the Year
Crypto officially slips into bear-market territory — here’s what that means in simple terms.
Here's the Numbers:
- Bitcoin is down more than 20% from its October 6th record high — that’s the textbook definition of a bear market.
- Ethereum fell hard too, logging one of its biggest single-day drops this year and down 35% YTD.
- The move was driven by profit taking, liquidations, and fear spreading through the market.
- Painful? Yes. Unusual for crypto? No. Sharp pullbacks often happen even during longer bull cycles.
What Happened:
- On October 6, Bitcoin broke above ~$126,000 for the first time ever.
- Today November 4, it dropped near $101,000 - a fall of 20%+ in just a few weeks.
- That fast flip from up to down is called a reversal. It means sellers took control after the hype peak.
Ethereum followed Bitcoin lower, with a steep red day of its own. In crypto, when BTC sneezes, the rest of the market catches a cold.
Why It’s Happening
- Profit Taking: After new highs, big players lock in gains.
- Liquidations: Traders using leverage (borrowed money) get forced out as prices slide, which pushes prices even lower.
- Fear & Momentum: Red candles trigger more selling — a feedback loop.
- Macro Jitters: Rates, inflation, elections, and global “risk-off” vibes add extra volatility.
Is the Bull Run Over?
Not necessarily.
Crypto history is full of sharp corrections inside bigger uptrends:
- Bitcoin has had multiple 20%–40% drops during past bull markets.
- Ethereum has seen big shakeouts, then strong rebounds later.
A drop hurts now, but it doesn’t automatically end a cycle.
The Bigger Picture
Even after today:
- Bitcoin is still up a lot year-to-date versus earlier in the year.
- Institutional interest (ETFs, funds, public companies) continues to grow.
- Long-term holders (the “diamond hands”) are historically patient.
Crypto isn’t dead — it’s volatile. That’s the price of admission.
What to Watch Next
- Bitcoin levels: This level of $100,000 area is a big psychological line; above it, confidence improves. Below it, expect more nerves.
- Ethereum levels: Watch recent support zones (where buyers stepped in before). If those hold, ETH can stabilize.
- Funding & liquidations: Calmer derivatives markets = less forced selling.
- Macro headlines: Rate expectations and risk sentiment can swing crypto quickly.
Bottom Line
Today was one of the worst days of the year for Bitcoin and Ethereum. It’s scary, it’s fast, and it feels brutal. But in crypto, big pullbacks are part of the journey. The market just reminded everyone that nothing goes straight up — even in a powerful trend.
Stay calm, manage risk, and remember: volatility cuts both ways. Personally - I am watching $2,800 in ETH and $80,000 in BTC to add to my DCA.
