$1 Trillion Crypto Bloodbath: Is the US Government Shutdown Triggering Mass Liquidations?
Crypto Market Update November 5, 2025: Momentum Surges 450% Amid Extreme Fear Index
The global cryptocurrency market experienced a volatile day on November 5, 2025, as investors reacted to macroeconomic uncertainty, regulatory developments, and notable altcoin rallies. Despite the ongoing market turbulence, several tokens demonstrated significant gains, highlighting the resilience and continued innovation within the crypto ecosystem.
Global Market Overview
As of today, the total market capitalization of all cryptocurrencies stands at approximately $3.43 trillion, reflecting a sharp 6% decline over the past 24 hours. Daily trading volume reached $311 billion, suggesting heightened activity despite widespread market caution.
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| Source: Forex Factory |
Bitcoin continues to dominate the market with a 58.8% share, while Ethereum maintains 11.4% of total market capitalization. Altogether, 19,416 cryptocurrencies are actively tracked across major data aggregators, illustrating the diversity and growth of the digital asset sector.
Among the top performers in the last 24 hours, Momentum (MMT) and the XRP Ledger Ecosystem have shown impressive upward momentum, capturing the attention of traders and investors alike.
Why the Market Experienced a Sharp Decline
Several factors contributed to the broad-based decline in cryptocurrency values. Overleveraged positions and rapid liquidations have been a major driver, causing more than $1 trillion in market value to evaporate since early October. Even amid strong adoption and technological growth, these market swings demonstrate the volatility that has long defined the sector.
Over 300,000 traders face daily liquidations, intensifying the downward pressure on major coins. Bitcoin has officially declined 20% from recent highs, entering bear market territory, while Ethereum has faced a 10% pullback, reflecting broader market corrections.
Top Coins and Market Movements
In terms of price action, Bitcoin is currently trading at $101,118, down 5.4% in the last 24 hours, with $113 billion in daily trading volume and a market cap of $2 trillion. Ethereum trades at $3,256.79, a 10.4% decline in the past day, with a market capitalization of $393 billion and $73 billion in volume.
Among the most notable gainers, Momentum (MMT) surged 447.7% to $1.98, fueled by heavy trading volume of $3.6 billion. Firo (FIRO) increased 10.4% to $1.74, while Aster (ASTER) rose 5.5% to $0.97. Conversely, Pudgy Penguins (PENGU) dropped 7.9% to $0.01436, reflecting ongoing market corrections.
In the top three gainers of the past 24 hours, Momentum (MMT) continues to lead, trading at $1.91 with a 469.9% increase. DeAgentAI (AIA) jumped 138.3% to $2.82, and Giggle Fund (GIGGLE) climbed 67.8% to $100.27. On the losing side, XUSD fell 73.2% to $0.25, XPIN dropped 39.9% to $0.0036, and MBG declined 34.4% to $0.50.
Stablecoins and DeFi Updates
Stablecoins maintained a market capitalization of $309 billion, with $243 billion in trading volume, showing minimal changes over the past 24 hours. Meanwhile, the decentralized finance (DeFi) market cap fell 4.8% to $121 billion, with $15.6 billion in daily trading volume. DeFi’s market share remains modest at 3.5%, although innovation and protocol adoption continue to drive interest.
The Bitcoin Fear and Greed Index is currently at 23, reflecting extreme fear. This shift from neutral sentiment last week to intense caution signals heightened market anxiety as traders react to volatility and price corrections.
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| Source: Alternative Me |
Key Market News and Developments
Several significant events have shaped market sentiment today:
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Gemini Plans Prediction Market Amid CFTC Review
The Gemini Exchange, founded by the Winklevoss twins, plans to launch a prediction market platform. The firm submitted an application to the U.S. Commodity Futures Trading Commission (CFTC) to establish a designated contract market (DCM). Approval is pending, and regulatory hurdles may delay the rollout. -
U.S. Treasury Sanctions DPRK-Linked Bankers
The U.S. Treasury sanctioned eight individuals and two entities associated with North Korea for laundering over $3 billion in stolen cryptocurrency. The funds were used to support the DPRK’s nuclear and missile programs, with linked institutions in China and Russia implicated in illegal cyber operations. -
Berachain Recovers $12.8 Million from Balancer Hack
Berachain announced full recovery of $12.8 million stolen during the BEX/Balancer v2 exploit. HONEY minting and redemption have resumed, and the exploited pool funds will be redistributed. Withdrawals from safe pools remain temporarily paused as investigations continue. -
Trump-Switzerland Trade Tariff Talks Resume
Negotiations over trade tariffs between the U.S. and Switzerland will continue in the coming weeks. Currently, the U.S. imposes a 39% tariff on Swiss goods, with discussions ongoing to review and potentially adjust these rates. -
U.S. Government Shutdown Hits Record 35 Days
The federal government shutdown has now reached 35 days, the longest in U.S. history. Since October 1, borrowing has totaled $600 billion, averaging $17 billion per day. This disruption has affected economic reporting, airspace operations, and social programs. -
Airspace Operations at Risk
The Department of Transportation warned that prolonged shutdowns may lead to airspace closures, with staffing shortages impacting 50% of facilities nationwide. Approximately 90% of air traffic controllers in the New York area are unavailable, resulting in millions of passenger delays. -
Economic Data Suspended
The U.S. Labor Department announced a halt to all major economic reports, including jobs, inflation, retail sales, and housing data. This suspension may last over 60 days, limiting the Federal Reserve’s ability to make informed monetary policy decisions. -
China Reduces U.S. Treasury Holdings to 22-Year Low
China’s holdings of U.S. Treasury securities fell to 8%, the lowest level in 22 years. Analysts warn that this could increase borrowing costs and reduce foreign investor confidence in U.S. fiscal stability. -
SNAP Benefits Frozen
SNAP benefits for over 40 million Americans remain frozen due to the government shutdown. Partial payments are being issued under court orders, but full resumption will only occur once government operations restart. -
U.S. Signals Pro-Crypto Policy Shift
The White House announced the end of previous administration policies perceived as restrictive toward cryptocurrency. Pro-crypto measures, including support for legislation dubbed “the most important crypto bill in U.S. history,” may pass before year-end, signaling potential institutional and retail adoption.
Conclusion: Navigating a Volatile Market
Today’s crypto market activity underscores both the promise and risks inherent in the digital asset space. While some tokens like Momentum (MMT) and DeAgentAI (AIA) have seen exponential gains, broader market sentiment remains fragile due to macroeconomic pressures, regulatory actions, and global financial uncertainty.
Investors are advised to approach the market with caution, remain informed about regulatory developments, and monitor sentiment indicators such as the Fear and Greed Index. At the same time, opportunities remain for traders to capitalize on high-volatility assets while leveraging emerging blockchain technologies and AI-driven projects.
The evolving landscape demonstrates that crypto markets are increasingly intertwined with global finance, policy, and technology trends. As adoption expands and innovations emerge, participants will need to balance risk management with strategic engagement to maximize potential rewards.
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