Ethereum and Bitcoin experienced significant declines on November 4, leading to over $1.1 billion in liquidations within a single day as traders hastily exited their positions amid growing market concerns. Ethereum’s price fell below the vital $3,400 mark, resulting in a 7% drop in a day and erasing all year-to-date gains since it had started 2025 at approximately $3,353. This latest downturn has shifted market sentiment notably after a period of stability in the altcoin sector.
Bitcoin also faced pressure, hitting an intraday low of $100,721 and approaching the psychologically important $100,000 support level, a threshold not reached since June 23. The Relative Strength Index (RSI) for both cryptocurrencies indicated near-oversold conditions, underscoring prevailing investor anxiety. This widespread selloff rippled through the entire cryptocurrency market, adversely affecting major altcoins, including Solana, BNB, and XRP, as traders rushed to decrease their exposure.
Data from Coinglass revealed that over 303,000 traders were liquidated in the preceding 24 hours, resulting in forced liquidations exceeding $1.10 billion. Within just one hour, more than $300 million in positions were eliminated, with approximately $287 million of that total attributed to long positions. This trend showcased the toll on overleveraged bullish investors as key support levels fell.
Interestingly, amidst the turmoil, a controversial trader named James Wynn emerged with an unrealized profit of $66,465, according to insights from Lookonchain.
On the behavioral front, on-chain analytics from Santiment highlighted a growing divide between large and small Bitcoin holders. Wallets holding between 10 and 10,000 BTC—often referred to as whales and sharks—have sold over 38,366 BTC since October 12, a drop of 0.28% in their overall holdings. These larger wallets control 68.5% of Bitcoin’s total supply, meaning their selling activities significantly impact the market. In contrast, smaller retail traders with holdings of less than 0.01 BTC, dubbed “shrimps,” have been accumulating Bitcoin, adding 415 BTC, reflecting a 0.85% increase in their holdings during the same timeframe.
Santiment noted that accumulation by smaller traders typically occurs during market downturns but cautioned that a sustained market recovery would hinge on a shift in behavior from larger holders—transitioning from distribution to accumulation. They indicated that market rallies often commence when these key stakeholders begin gathering the assets that smaller wallets are letting go, emphasizing that a market bottom would be confirmed once retail traders exhibit capitulation, selling their holdings at a loss.
As both Bitcoin and Ethereum approach critical psychological and technical levels, traders are keenly monitoring for any signs of stabilization or further declines. A decisive drop below the $100,000 mark for Bitcoin could exacerbate outflows and worsen negative sentiment throughout the digital asset landscape.
