Between November 2 and 5, 2025, major cryptocurrencies including Bitcoin, Ethereum, and XRP experienced a significant price correction. Bitcoin dropped nearly 2.3% to $101,465, Ethereum fell about 5.8%, and XRP declined by 2%. Analysts attribute this downturn to rising global economic uncertainty and announcements from key financial institutions hinting at interest rate changes.
Investor sentiment was shaken after the U.S. Federal Reserve signaled a potential rate hike in December, which historically leads to tighter liquidity in the markets. Additionally, geopolitical tensions, particularly between the U.S. and China, have contributed to cautious trading behavior.
Market capitalization across cryptocurrencies decreased to approximately $3.38 trillion, marking a nearly 2% drop over two days. Despite this correction, experts note that long-term adoption trends and institutional investment remain strong, suggesting that the current dip could present buying opportunities.
Retail investors are advised to remain cautious but not overly reactive, as the volatility reflects broader economic conditions rather than fundamental weaknesses in major cryptocurrencies. Many traders are closely watching support levels around $100,000 for Bitcoin, considering it a critical psychological threshold.
