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The Numbers How Bad Was the Selloff?

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Are you wondering why Bitcoin crashed so dramatically on November 5, 2025? You're not alone. On that fateful Tuesday, Bitcoin plunged below the $100,000 mark for the first time since June, sending shockwaves through the entire cryptocurrency market.

In this guide, you'll discover the key factors that triggered this violent selloff, what long-term holders did to spark the decline, and what it means for your crypto investments moving forward.

Stock and Crypto Market Values showing decline

Photo by Maxim Hopman on Unsplash

The Numbers: How Bad Was the Selloff?

The Bitcoin selloff on November 5, 2025, was nothing short of catastrophic for cryptocurrency investors. Bitcoin fell as much as 7.4% on Tuesday, plunging below $100,000 for the first time since June.

Here's what the damage looked like across the market:

  • Bitcoin's Price Drop: Fell from over $126,000 to approximately $99,780
  • Market Cap Loss: The broader cryptocurrency market lost approximately $1 trillion in value
  • Historical Context: This marked the lowest point since June when Bitcoin last tested these levels

The speed and severity of the decline caught many investors off guard. Here's the thing: this wasn't just a minor pullback. It was a full-fledged market correction driven by specific catalysts that we'll explore next.

The Primary Cause: $45 Billion Whale Dump

The most significant trigger for the November 5 selloff was the massive sell-off by long-term Bitcoin holders, often referred to as "whales" in crypto terminology. Long-time Bitcoin holders offloaded approximately $45 billion in Bitcoin on November 5, 2025.

When holders who have accumulated Bitcoin over years suddenly decide to liquidate their positions, it signals a loss of confidence. This creates a cascading effect of selling pressure that ripples through the entire market.

Close-up of stock chart on computer screen

Photo by Aedrian Salazar on Unsplash

Understanding the Leverage Flush

The Block reported that this was characterized as a "violent selloff," with analysts noting it was driven by a "leverage flush." This means traders who had borrowed money to amplify their positions were forced to liquidate as prices declined.

But wait—here's what makes this particularly damaging. When leveraged positions get liquidated, it creates a vicious cycle. As prices fall, automated systems trigger stop-losses, which forces more selling, which pushes prices down further, triggering more liquidations.

The $45 billion dump accelerated this process dramatically. Institutional investors and sophisticated traders recognized the market was turning and decided to exit before things got worse. Their massive sales then triggered the cascade effect that smaller traders couldn't control.

Secondary Factors Compounding the Crash

While the whale dump was the primary catalyst, several other factors created the perfect storm for a major selloff.

Risk-Off Sentiment Across Global Markets

A mild risk-off tone swept across global markets, with investors pulling back from speculative and high-risk assets. Bitcoin, being a volatile and risk-on asset, was particularly vulnerable to this shift in sentiment.

When institutional investors worldwide decide to reduce risk simultaneously, assets like Bitcoin take the hardest hit. Here's the best part: this also helps explain why the selloff happened so suddenly and violently.

Strengthening US Dollar

A firmer US dollar tightened financial conditions globally, making Bitcoin and other cryptocurrencies less attractive as alternative stores of value. When the dollar strengthens, investors typically reduce exposure to speculative assets like crypto.

This matters because many international investors use Bitcoin as a hedge against currency weakness. A stronger dollar undermines that entire thesis, leading them to reassess their positions.

AI Trade Concerns

Analysis and charting visualization

Photo by Yashowardhan Singh on Unsplash

Concerns about the sustainability of the AI trade—which had driven much of the market's gains—also contributed to broader risk-off sentiment. When investors start questioning whether a major narrative is overextended, they begin reducing positions across the board.

Bitcoin, as a risk asset correlated with tech stocks and speculative bets, suffered collateral damage from this reassessment.

Trade Jitters and Liquidation Events

The latest stretch of volatility stemmed from trade jitters and monumental liquidation events. Waning bullishness for cryptocurrencies overall meant fewer buyers were willing to step in and catch the falling knife.

What Do Analysts Say?

Despite the dramatic nature of the selloff, analysts remained cautiously optimistic about Bitcoin's long-term prospects. Analysts described the event as a "violent selloff, not terminal," suggesting that the decline was severe but not necessarily indicative of a permanent bear market.

The consensus view was that Bitcoin would consolidate after the leverage flush, with potential recovery once panic selling subsided. This distinction matters because it means professional investors view this as a healthy correction rather than a fundamental breakdown.

What This Means for Your Investments

Short-Term Outlook

Bitcoin is likely to remain volatile in the near term as the market digests the selloff. The $99,000-$100,000 level has become a critical support area. If Bitcoin holds above this level, it could signal the bottom. If it breaks below, further downside becomes possible.

Potential recovery could follow once leverage is fully flushed out and panic selling subsides. Traders and investors should expect continued volatility and potential for sudden moves in either direction.

Long-Term Perspective

Despite the selloff, major institutions continue to view Bitcoin as a long-term store of value. The underlying fundamentals of Bitcoin adoption and blockchain technology remain intact.

These pullbacks are becoming more normal as the crypto market matures. What once would have been shocking now feels almost routine—a sign that the market is developing healthier price discovery mechanisms.

Key Takeaways

  1. The Primary Trigger: A $45 billion sell-off by long-term Bitcoin holders was the main catalyst for the November 5 crash
  2. Cascading Effect: The whale dump triggered a leverage flush, creating a cascade of selling pressure throughout the market
  3. Market Conditions: Risk-off sentiment, a stronger dollar, and concerns about the AI trade all contributed to the decline
  4. Not Terminal: While violent, analysts view this as a correction rather than a permanent market collapse
  5. Recovery Potential: Once leverage is flushed and panic subsides, the market could stabilize and recover

Conclusion

The Bitcoin selloff on November 5, 2025, was a dramatic reminder of cryptocurrency's volatility. While the $45 billion whale dump was the primary trigger, it was the convergence of multiple market factors—risk-off sentiment, dollar strength, and concerns about speculative trades—that created the perfect storm.

For long-term investors, this pullback presents both a warning and an opportunity. The underlying technology and adoption trends remain strong, but the path forward will likely include more volatility as the market matures.

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