Bitcoin Updates: ETF Withdrawals and Major Whale Sell-Offs Lead to $1.2 Trillion Crypto Market Crash

The cryptocurrency sector extended its losses on November 3, 2025, as

($BTC) slid 2.5% over the last day, falling below $108,000. This intensified a widespread selloff that wiped out in total market capitalization over the past eight weeks, based on data from . The ongoing decline, driven by macroeconomic worries and technical factors, has rattled the U.S. crypto industry, with shares of companies such as (COIN) and MicroStrategy (MSTR) mirroring the digital asset’s sharp drop.

Federal Reserve Chair Jerome Powell recently stated that interest rate cuts this year are "not a foregone conclusion," reigniting concerns about persistently high rates, strengthening the U.S. dollar, and prompting investors to move away from riskier assets. This policy stance coincided with a record in outflows from U.S. Bitcoin ETFs—the largest since August—as institutional investors reduced their exposure amid declining sentiment. James Butterfill, Head of Research at CoinShares, pointed out that Bitcoin, being highly sensitive to interest rates, suffered the most from these outflows. The iShares Bitcoin Trust alone saw $390 million withdrawn, as reports highlighted that of the recent ETF outflows.

Adding to the pressure, long-term Bitcoin investors—often referred to as "whales"—have transferred almost $1.48 billion in

to exchanges since October 1, suggesting that early holders may be selling. Noteworthy transactions included Owen Gunden moving $364.5 million to Kraken, along with increased activity from , raising alarms about possible forced liquidations. At the same time, miners contributed to the selling, sending 210,000 BTC to exchanges in October, with Binance’s reserves rising by 108,000 coins.

The market downturn also overlapped with U.S. President Donald Trump’s contentious comments about restricting Nvidia’s advanced Blackwell AI chips to domestic customers, dampening optimism from recent U.S.-China trade progress. This, along with a 34-day government shutdown and stalled congressional funding negotiations, increased economic uncertainty and further pressured risk assets like Bitcoin.

Ethereum (ETH) performed even worse, dropping 5.1% to $3,657.77. Meanwhile, smaller coins such as

(DOGE) confirmed a bearish as its 50-day moving average fell below the 200-day average. In contrast, (SOL) stood out as a rare winner, attracting $421 million in ETF inflows as investors sought higher-growth alternatives.

The selloff also hit public equities, with Coinbase shares dropping 3.9% and MicroStrategy falling 1.8%, despite gains in its Bitcoin holdings. MicroStrategy continued to accumulate, recently

. Robinhood, another crypto-focused company, defied the trend, posting a Q3 revenue jump to $1.2 billion, though this was driven by overall trading activity rather than crypto alone. and strategic initiatives, such as Coinbase’s collaboration with for AI-resistant authentication, provided only modest relief.

From a technical perspective,

analyses indicated that the drop below $109,500 triggered automatic sell-offs, with crucial support now between $108,000 and $109,000. Historically, November has been a strong month for BTC, with average gains of 42.32%, but experts warn that a sustained rebound depends on ETF inflows surpassing $5 billion per week and open interest dropping below $30 billion, especially after reports that during the recent unwinding.