Crypto Bloodbath: Bitcoin and Ethereum Plunge as US Shutdown, Trump Comments Shake Market
Crypto Market Update: U.S. Shutdown Deepens, Trump Denies Binance Link, Bitcoin Falls as Fear Index Hits Extreme Low
The global cryptocurrency market is witnessing a sharp downturn as political tension in the United States, regulatory uncertainty, and major industry developments continue to shake investor sentiment. In the past 24 hours, the total crypto market capitalization dropped 3.5% to $3.64 trillion, with daily trading volume surging to $218 billion.
Bitcoin, Ethereum, and several altcoins have been hit hard, while meme coins and some niche DeFi projects are showing surprising resilience. The overall tone of the market is now one of caution and fear, as reflected by the Bitcoin Fear & Greed Index, which plunged to 21 — “Extreme Fear.”
Source: Forex Factory
Bitcoin and Ethereum Lead the Decline
Bitcoin (BTC), the world’s largest cryptocurrency, is trading at $107,118, marking a 2.4% decline in the past 24 hours. Despite the dip, Bitcoin continues to dominate with a 58.6% market share, holding a market capitalization of $2.1 trillion and a robust trading volume of $76 billion.
Ethereum (ETH) fared even worse, slipping 5.2% to $3,643, with a $439 billion market cap and daily volume of $48.3 billion. Analysts attribute the steeper fall in ETH to reduced DeFi activity and profit-taking among institutional investors after last week’s rally.
“Ethereum’s price correction was expected,” said crypto strategist Daniel Rees of Blockchain Capital Markets. “Traders were overextended after the NFT revival news, and the broader market sentiment turned risk-off following Washington’s budget deadlock.”
Top 5 Trending Coins Today
Despite the overall sell-off, a few cryptocurrencies have stood out for their volatility and trading volume:
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Dash (DASH) surged 26.6% to $117.15, driven by renewed retail interest and a rise in privacy-focused trading.
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Zcash (ZEC) gained 3.9% to $429.89, as privacy coins gained momentum amid regulatory concerns.
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Aster (ASTER) fell 22.2% to $0.92, though it saw strong trading activity with a $1.53 billion volume.
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Kite AI (KITE) plummeted 38.7% to $0.073, following heavy post-listing sell-offs and airdrop profit-taking.
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Solana (SOL) slipped 9.9% to $167.80, despite leading the market in volume with $9.83 billion traded.
Biggest Gainers and Losers
Some smaller-cap tokens managed to deliver spectacular gains, defying the bearish market.
Top Gainers:
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Jelly-My-Jelly (JELLYJELLY) skyrocketed 222.6% to $0.2086, backed by social-media hype.
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Mine Blue (MB) jumped 117.1% to $0.062, as early investors piled in on community-driven speculation.
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Decred (DCR) rose 70% to $31.45, benefiting from renewed discussions around hybrid PoW/PoS networks.
Top Losers:
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Wilder World (WILD) plunged 60.5% to $0.078, losing most of last week’s metaverse-related gains.
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TeaFi Token (TEA) fell 56.7% to $0.17, amid liquidity drain from small DeFi projects.
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Paparazzi Token (PAPARAZZI) dropped 40.1% to $0.010, hit by declining influencer engagement.
Stablecoins and DeFi Sector Face Pressure
The stablecoin sector remains relatively steady with a combined market capitalization of $311 billion, reflecting a 0.3% positive change. Daily volume across all stablecoins reached $165 billion, underscoring their continued use as safe havens during volatility.
Meanwhile, DeFi protocols have suffered a steep correction, with total value locked (TVL) down 8.1% to $128 billion. DeFi’s overall dominance now stands at 3.5%, showing declining investor confidence following a series of exploits and technical issues across multiple chains.
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| Source: Alternative Me |
Fear & Greed Index Signals Investor Panic
The Bitcoin Fear & Greed Index — a key barometer of market psychology — nosedived from 42 (“Fear”) yesterday to 21 (“Extreme Fear”) today. Just last month, the index stood at 74 (“Greed”), showing how quickly optimism has evaporated from the market.
“This is one of the fastest drops in sentiment we’ve seen all year,” said analyst Kiran Das from CryptoQuant. “Between the U.S. shutdown, uncertainty over Binance’s legal situation, and large-scale liquidations, the market is reacting more emotionally than logically.”
Breaking News Highlights: Politics, Scandals, and Big Moves
1. Binance and Coinbase Announce New Listings
Binance Alpha confirmed it will list Intuition (TRUST) on November 5, while also launching a Momentum (MMT) airdrop for BNB holders within 24 hours. Coinbase followed with an announcement that Kite AI (KITE) spot trading officially began on November 3.
The timing is crucial as investors look for safer entries amid market volatility.
2. Akshat Vaidhya Criticizes Crypto VC Performance
Akshat Vaidhya, a key member of Arthur Hayes’ Maelstrom Fund, revealed his $100,000 investment in Pantera’s Early-Stage Token Fund is now worth just $56,000 after four years.
Vaidhya slammed traditional crypto VC models, calling them “bloated with high fees and poor asset selection,” and urged investors to back “lean, scalable funds with true alpha.”
3. Trump Denies Ties with Binance Founder in 60 Minutes Interview
In a fiery 60 Minutes appearance, former President Donald Trump denied having personal connections to Changpeng Zhao (CZ), the founder of Binance — despite reports he granted CZ a last-minute pardon.
Trump labeled the Binance investigation as a “witch hunt” and distanced his family from the matter, clarifying that while his sons are active in crypto ventures, “they are private citizens, not government officials.”
4. U.S. Government Shutdown Deepens
The ongoing U.S. government shutdown is on track to become the longest in history, potentially lasting until December 1 — totaling 61 days.
In just 30 days, $600 billion in new federal debt has been added, averaging nearly $19 billion daily.
The crisis has disrupted airline travel for 3.2 million passengers, with projections suggesting 10 million delays by Thanksgiving. Economists warn that labor markets are softening even as the Federal Reserve continues rate cuts.
5. Balancer Exploit Causes $120 Million DeFi Loss
A coordinated exploit targeted Balancer and its associated forks, draining an estimated $120 million in assets.
The attack reportedly exploited rounding errors in batch swap algorithms, forcing Berachain to pause operations and block multiple bridge addresses. Emergency teams are now working to restore liquidity and user confidence.
6. MicroStrategy Unveils Euro-Based Preferred Stock for Bitcoin Buys
In a strategic move, MicroStrategy announced $STRE, a 10% Series A Perpetual Preferred Stock, denominated in euros and targeted toward European investors.
The raised funds will primarily be used for purchasing Bitcoin and general corporate expansion.
Backed by 641,205 BTC (worth $77 billion), the product offers a higher yield than most EU sovereign bonds, positioning it as a hybrid investment for traditional and digital asset holders.
7. Chainlink Partners with FTSE Russell
Chainlink (LINK) has entered a major partnership with FTSE Russell, enabling real-time publication of global index data on-chain via the DataLink service.
The integration includes major benchmarks such as the Russell 1000, 2000, and 3000, along with the FTSE 100, WMR FX benchmarks, and FTSE Digital Asset Indices — signaling another leap toward traditional finance–crypto integration.
8. $540 Million Canton Coin Deal Backed by DRW and Liberty City
DRW Holdings and Liberty City Ventures announced a $540 million private placement deal via Tharimmune Inc. to finance Canton Coins, the native token for Digital Asset Holdings’ Canton blockchain, which specializes in financial transaction networks.
9. SOFR Rate Spike Triggers Crypto Fund Outflows
The Secured Overnight Financing Rate (SOFR) jumped 18 basis points to 4.22%, marking its biggest one-day increase in a year.
The rise coincided with $360 million in outflows from digital asset funds as institutional investors rebalanced portfolios amid a hawkish Federal Reserve tone.
Bitcoin ETFs lost $946 million, while Solana ETFs surprisingly attracted $421 million in new inflows — highlighting a shift toward faster blockchain ecosystems.
Outlook: Uncertainty Reigns but Opportunity Persists
While the market correction has shaken confidence, analysts believe the downturn may offer a window for long-term accumulation. With institutional inflows slowing but not disappearing, and key partnerships like Chainlink-FTSE bridging TradFi and DeFi, many see this as a temporary reset rather than the start of a prolonged bear cycle.
“Volatility is the price of innovation,” said market analyst Elena Duarte. “Each downturn cleans up excess leverage and sets the stage for healthier growth.”
As traders await developments in Washington and the Binance-Trump saga, all eyes remain on Bitcoin’s ability to hold the $107,000 support line. A decisive break below could drag the entire market lower, but if BTC stabilizes, recovery could come faster than expected.
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