{"id":56761,"date":"2025-11-05T08:01:39","date_gmt":"2025-11-05T08:01:39","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=56761"},"modified":"2025-11-05T08:01:39","modified_gmt":"2025-11-05T08:01:39","slug":"what-crashed-the-crypto-market-on-november-4-and-should-you-worry","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=56761","title":{"rendered":"What Crashed the Crypto Market on November 4 and Should You Worry?"},"content":{"rendered":"
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The broader economic perspective shows few signs to worry and it certainly couldn\u2019t predict what transpired in the cryptocurrency markets at the start of the current business week. Bitcoin traded at $111,000 on Sunday evening, ETH was above $3,900, XRP was at $2.60, and so on.<\/p>\n

What followed, though, was a market-wide crash that pushed<\/a> BTC down to just under $99,000 for the first time in almost five months. ETH turned negative<\/a> YTD, dropping to $3,200. And these declines took place less than a week after the US Federal Reserve cut the interest rates, US and China made significant progress on the trade deal front, and the inflation numbers in the States were not as high as many feared.<\/p>\n

So, why did crypto crash, and why did the market cap go down to $3.2 trillion, thus erasing $1 trillion since the October 6 all-time highs? Here\u2019s the take from the Kobeissi Letter.<\/p>\n

Why, Crypto, Why?<\/h2>\n

The analysts noted<\/a> that the big answer to this question is \u201cmore technical than fundamental.\u201d They believe that some of the key metrics for the industry, such as adoption levels, deregulation, and advancing technology, remain very high, which should be prompting investors to enter the market, not pushing them away.<\/p>\n

However, they warned once again that leverage is at \u201cunprecedented levels, which is amplifying moves in the market, such as the $20B liquidation seen on October 10.\u201d<\/p>\n

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\u201cAs a result, when uncertainty arises or technical momentum fades, downward swings are amplified.\u00a0300,000 traders are being liquidated PER DAY on average, and the market has evolved into its most reactive form in history amid Trump posts and headlines.\u201d<\/p>\n<\/blockquote>\n

Consequently, the analysts warned that the short-term price picture points to \u201clarger swings in both directions\u201d due to the excessive leverage used by futures traders, but noted that the long-term thesis is \u201cstronger than ever.\u201d<\/p>\n

One of Those Days<\/h2>\n

Crypto\u2019s crash was not an isolated event, as most financial markets went down on Monday and Tuesday. Of course, their losses, even the 4.5% decline<\/a> of the Japanese stock market, are nowhere near as damaging as crypto\u2019s calamity, but that\u2019s primarily because of the aforementioned leverage and the size of the actual market.<\/p>\n

Consequently, the Kobeissi Letter determined once again that nothing had changed fundamentally and added that such corrections are experienced periodically during bull runs. The analyst concluded that \u201crate cuts have arrived, deregulation is here, earnings growth is running at 10%+ YoY, and the AI Revolution is accelerating,\u201d and advised investors to \u201cignore the noise.\u201d<\/p>\n

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Today is one of those days:<\/p>\n

Just about every asset class is trading lower today and all intra-day rally attempts are being sold.<\/p>\n

It\u2019s simply widespread profit-taking.<\/p>\n

In our view, nothing has changed fundamentally speaking.<\/p>\n

That said, the most healthy bull markets experience\u2026<\/p>\n

\u2014 The Kobeissi Letter (@KobeissiLetter) November 4, 2025<\/a><\/p>\n<\/blockquote>\n