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The digital currency market recently experienced a notable decline, with major cryptocurrencies like Bitcoin, Ethereum, XRP, and Dogecoin recording significant drops. This downturn resulted in liquidations exceeding $1 billion, pushing the market into a state described as 'extreme fear.' Analysts are closely monitoring the situation, with some suggesting that Ethereum is approaching the concluding phase of its current correction.

Cryptocurrency Market Plunges Amidst Intense Selling Pressure

On Monday, November 3, 2025, the cryptocurrency market experienced a sharp decline, with popular digital assets facing substantial losses. The total market capitalization for global cryptocurrencies contracted by 0.39% over a 24-hour period, settling at $3.55 trillion. Bitcoin, the leading cryptocurrency, dipped below the $106,000 threshold, reflecting continued deleveraging within the market. Its trading volume dramatically surged, more than doubling to $74 billion in a single day, indicating intense selling activity.

Ethereum also saw a significant drop, falling below $3,600 overnight. This decline was accompanied by a substantial increase in its trading volume, reinforcing the presence of strong selling pressure. XRP and Solana recorded even more pronounced losses, with XRP decreasing by 6.39% and Solana by a staggering 10.27%. Dogecoin, a prominent meme coin, also fell by 7.55%.

Data from Coinglass revealed that approximately $1.28 billion was liquidated from the crypto market within 24 hours, with long positions accounting for 90% of these liquidations. Despite the price decline, Bitcoin's open interest saw a marginal increase of 0.03%, a phenomenon that typically signals the opening of new short positions by traders. Notably, nearly 70% of Binance traders holding open BTC positions were betting on an increase in the asset's price, contrasting with the prevailing market sentiment.

The market sentiment, as measured by the Crypto Fear & Greed Index, registered 'Extreme Fear,' underscoring the widespread anxiety among investors. Amidst this crypto turmoil, traditional stock markets showed mixed results. The S&P 500 and Nasdaq Composite experienced modest gains, rising by 0.17% and 0.46% respectively. However, the Dow Jones Industrial Average saw a decrease of 0.48%. The tech sector received a boost from a significant multi-year partnership between Amazon.com, Inc. and OpenAI, valued at $38 billion, aimed at providing computing infrastructure for OpenAI's AI workloads. Amazon's stock rallied 4% to reach a record high.

Regarding future outlooks for cryptocurrencies, Ryan Lee, Chief Analyst at Universal Exchange Bitget, suggested that Bitcoin could test resistance levels between $115,000 and $120,000 in the near term, provided macroeconomic conditions improve. He also predicted that Ethereum might ascend towards $4,200. Lee highlighted key factors to monitor, including upcoming Federal Reserve interest rate decisions, continuous ETF inflows, and regulatory clarity from global bodies like the SEC, all of which could accelerate mainstream adoption of cryptocurrencies. Conversely, he warned that geopolitical tensions and unexpected inflation figures pose significant downside risks. Cryptocurrency commentator Wolf echoed concerns about Ethereum, stating that it is entering the 'final stage of correction' and anticipates further declines, unless it manages to reclaim the $3900 level.

The current cryptocurrency market environment serves as a stark reminder of the volatility inherent in digital assets. While the Amazon-OpenAI deal brought a glimmer of optimism to the tech sector, the crypto world remains under intense pressure. Investors are advised to exercise caution and remain vigilant, as the interplay of macro-economic factors, regulatory developments, and market sentiment continues to shape the trajectory of these nascent financial instruments. The pronouncements from seasoned analysts like Ryan Lee and Wolf underscore the critical juncture at which major cryptocurrencies find themselves, demanding a discerning approach from market participants.