On November 5, the crypto market volatilty continued, and Bitcoin dropped to $99,000, dipping below the important psychological level of $100,000.
Bitcoin’s price decline was fueled by rising fear, the October 10 cascade in liquidations’ aftermath, diminished institutional interest, and long-term holders’ sell-off, among other factors.
However, Bitcoin was able to regain $101,000 earlier, despite the recent crash.
Bitcoin Price Trajectory on November 5
At the moment of writing this article, BTC is trading above $101,000, down by 2% in the past 24 hours. Earlier, BTC price dropped to $99,000, before a slight rebound to current levels.
The general crypto market continues to see volatilty and it’s down by over 1.8% today, with a market cap of over $3,38 trillion. The Fear and Greed Index currently points to Fear, nearing extreme fear levels.
Bitcoin Price Decline Triggers
Since its latest ATH. BTC fell approximately 20%, and what should have been Uptober turned out to be a Red October. Bitcoin’s decline since it reached its new ATH above $126,000 on October 6 is due to multiple factors, including long-term holders selling.
LTHs BTC Sell-Off
On November 5, citing Vetle Lunde, head of research at K33, Bloomberg pointed out that more than 319,000 BTC, currently worth over $32,4 billion, have been reactivated in the past month, mostly from LTHs. Long-term holders are entities that have held BTC for six to twelve months.
The move suggests that whales have been taking profits, and while some reactivation stems from internal transfers, much reflects real selling.
In an X post on November 4, Lunde also pointed out that BTC’s 30-day performance relative to the Nasdaq was the worst since the summer when Germany decided to sell its BTC holdings.
The latest LTHs sell-off mirrors a sad event, noted Bloomberg – conviction eroding. The publication also cited Markus Thielen, head of 10x Research, who said that there’s a growing imbalance between LTHs unloading BTC and new investors.
Thielen observed earlier in 2025 that mega whales, entities holding between 1,000 and 10,000 BTC, began selling even as institutional players were trying to absorb supply via BTC ETFs inflows. This is how he explained BTC’s summer price trajectory.
In the past month, LTHs sold approximately 400,000 BTC, currently worth over $40 billion
Since the October 10-11 crash, broader demand had dropped, and people need to close their positions, according to Thielen.
Crypto Liquidations
After the massive October 10-11 crypto liquidation event, traders have continued to use leverage, leading to new liquidations in the market. Over $1,72 billion in crypto positions were liquidated in the past 24 hours, with $1,31 billion in longs and more than $406 million in shorts.
More than 438,700 traders were liquidated, according to CoinGlass data, and most 24-hour liquidations were via Bybit, followed by Hyperliquid and Binance.
However, in the past 24 hours, ETH recorded the highest number of liquidations, over $572 million, followed by BTC with more than $492 million.
BTC ETFs Outflows
Institutional interest in BTC has been diminishing, and the US-based BTC ETFs have recorded outflows for five consecutive days since October 29.
According to SoSoValue data, the biggest outflow day was on November 4, when the crypto products saw outflows of more than $577,7 million.
Institutional interest has been rotating from both BTC and ETH into Solana, as pointed out by the six consecutive days of inflows in US SOL ETFs since their launch on October 28-29.
DeFi Crisis
Multiple DeFi protocols have suffered losses of hundreds of millions lately, including Balancer, Stream Finance, and others. These events have also led to diminished trust in the industry and sell-offs.
What’s Next for BTC and Crypto
Optimism should remain alive in the crypto industry at the end of 2025, as there are plenty of reasons for an upcoming bullish future for BTC and the markets.
After whale sell-offs and multiple market shakeouts, the upward trajectory for Bitcoin should resume.
Following a drop below $100,000 on November 5, BTC managed to bounce back above this important level. Today marks a year since the US elections, and despite its latest 20% drop from its new ATH, Bitcoin is up by almost 50% since the same day in 2024.
The Trump administration has done what the US President initially promissed for the industry, implementing friendlier crypto regulation. Trump even pardoned CZ last month, and his administration highlighted that the persecution days for crypto are over. Also, the tensions between the US and China have eased, which is good for the entire industry.
During the last FOMC meeting in the US, the Fed highlighted the end of QT on December 1st. Despite the uncertainty of a new rate cut this year, the end of QT is a bullish sign for the markets.
Also, what’s more important is that Bitcoin and crypto continue to see rising global adoption and real-world uses.
Today, it was revealed that Switzerland established its own Bitcoin Treasury Company called Future Holdings – an extremely bullish sign for the European crypto ecosystem. Future secured $35 million to bridge Bitcoin with legacy finance.
Crypto adoption in Europe is on the rise, and the implementation of a BTC Treasury is a sign of hope in the region.
All these are clear signs that conviction in Bitcoin is far from over – it’s silently rising globally.
Jordi Visser, the founding Managing Partner of Anchor Point Asset Management, a global macro hedge fund, and a former Managing Director at Morgan Stanley, recently released an important work called “Bitcoin’s Silent IPO: Why This Consolidation Isn’t What You Think”, addressing the quiet liquidity event that’s reshaping Bitcoin’s ownership base and its future stability.
In his notes, Visser explains the reasons why this is not a bear market and Bitcoin’s current phase is the IPO that the digital asset never had.
Overall, despite the recent crash and volatilty triggered by multiple reasons including the use of excessive leverage and sell-offs, the Bitcoin ecosystem and the entire crypto industry didn’t lose conviction. The ecosystem is maturing, and after shaking out the weak hands, it will continue to flourish, and innovation will prevail.
Binance’s Yi He also shared an optimistic take on these latest events, highlighting that “in every cycle, some people exit the market, some leave in tears, while others laugh in the end”.
