Crypto Carnage: Did US Government Shutdown Trigger $20B Liquidation & $1T Market Meltdown?
Digital assets face brutal selloff as Washington gridlock sparks market panic
The Warning Signs
Massive liquidations hammered crypto positions as Bitcoin plunged below critical support levels. Over $20 billion in positions got wiped out in hours—traders watched helplessly as stop-losses triggered cascading sell orders across exchanges.
Government Shutdown Fallout
With federal agencies dark and economic data frozen, institutional players scrambled for exits. The timing couldn't be worse—regulatory uncertainty meets perfect storm conditions. Washington's dysfunction now carries a $1 trillion price tag for crypto investors.
Market Mechanics Exposed
Leverage positions unraveled faster than congressional negotiations. The usual safe havens offered no protection—even stablecoins saw unusual volatility. Exchanges reported system strain as volume spiked 300% above averages.
Silver Linings & Exit Strategies
Veteran traders loaded up on blue-chip assets at fire-sale prices. The smart money knows these dips never last—just ask anyone who sold during previous government shutdowns. Meanwhile, politicians continue collecting salaries while your portfolio burns.
When Washington plays chicken with the economy, crypto markets become collateral damage. But history shows these crashes create generational buying opportunities—if you've got the stomach for the volatility.
Why Crypto Market Crash Today, November 5, 2025
The global crypto market has lost over $1 trillion in value since October 6th, driven by excessive leverage and rapid liquidations. Despite strong adoption and tech growth, market swings have intensified. Over 300,000 traders face daily liquidations, and Bitcoin is officially down 20%, entering bear territory.
Major Crypto Events Today
Source: Forex Factory
24 Hour crypto Market Update
Bitcoin is currently priced at $101,118, down 5.4% in the past 24 hours. With $113 billion in trading volume and a $2 trillion market cap.
Ethereum trades at 3,256.79, dips 10.4% in the last 24 hours, with a $393 billion market cap and $73 billion in trading volume.
Momentum (MMT) at $1.98, up 447.7% with TV of $3.6B.
Firo (FIRO) at $1.74, up 10.4% with TV of $1.19M.
Bitcoin (BTC) sits at $101,410, down 5.4% with TV of $117.1B
Aster (ASTER) at $0.97, rising 5.5% with TV of $1.53B.
Pudgy Penguins (PENGU) is $0.01436, down 7.9% with TV of $383M.
Momentum (MMT) trades at $1.91, surging 469.9% with TV $3.51B.
DeAgentAI (AIA) is priced at $2.82, jumping 138.3% with TV $84.5M.
Giggle Fund (GIGGLE) stands at $100.27, up 67.8% with TV $785M.
XUSD trades at $0.25, down 73.2% with a trading volume (TV) of $351K.
XPIN is priced at $0.0036, dropping 39.9% records a TV of $26.5M.
MBG stands at $0.50, falling 34.4%, with a TV of $8M.
Stablecoins hold a market cap of $309 billion with $243 billion in trading volume, representing no change.
The DeFi market cap stands at $121 billion, declined 4.8% in the last 24 hours, with a trading volume of $15.6 billion. DeFi dominance remains at 3.5%.
Fear and Greed Index Today
Source: Alternative Me
The Bitcoin Fear & Greed Index currently shows “Extreme Fear” at 23, reflecting investors’ anxiety amid volatility and recent price drops. Just a week ago, sentiment was neutral, and last month it showed greed, indicating a sharp shift from Optimism to caution as traders pull back amid uncertainty.
Latest Market News Today
Gemini, founded by the Winklevoss twins, plans to launch prediction industry contracts.
The firm applied to the CFTC in May to establish a designated contract market (DCM).
Approval is pending and may face delays from the shutdown.
U.S. Treasury sanctioned 8 individuals, 2 entities tied to North Korea.
They laundered over $3B in stolen crypto to fund DPRK’s nuclear, missile programs.
Sanctioned banks, firms in China, Russia linked to illegal cyber, IT operations.
Berachain confirmed full recovery of $12.8M from the BEX/Balancer v2 exploit.
HONEY minting and redemption resumed.
Exploited pool funds will be redistributed soon.
Withdrawals from safe pools remain paused pending investigation.
Talks will continue in the coming weeks between the two nations over trade tariffs
Currently, the U.S. charges a 39% tariff on Swiss goods
Tariff will be reviewed under ongoing negotiations.
The U.S. government shutdown has entered day 35, the longest in history.
Since October 1st, the government has borrowed $600 billion, averaging $17 billion daily.
The Department of Transportation warned that airspace may face closures if the shutdown continues.
Around 50% of air traffic control facilities are short-staffed.
Around 90% of controllers in the New York area are unavailable.
Over 3.2 million passengers have faced delays or cancellations since October, expected to hit 10 million by December 2025
13,000 controllers are currently working without pay.
The Labor Department announced it will suspend all major economic reports during the shutdown.
This includes jobs, inflation, retail sales, and housing data.
The blackout may last over 60 days, leaving the Federal Reserve to cut rates without fresh data.
Amid rising U.S. debt and shutdown woes, China’s share of U.S. Treasuries fell to 8%, a 22-year low.
This shift signals global concerns over U.S. fiscal stability.
Analysts warn it could increase borrowing costs and weaken foreign investor trust.
President Trump confirmed that SNAP benefits will restart only after the government reopens.
Over 40 million Americans depend on the program for food assistance.
The White House blamed Democrats for the delay.
Partial payments are being issued under court orders, affecting 42 million recipients nationwide.
The White House declared the Biden era ended on cryptocurrency.
Officials said this marks a policy shift toward a pro-crypto stance in the U.S.
Sen. Lummis Calls Crypto Bill ‘Most Important in U.S. History’, could pass before year-end.
CoinGabbar’s Opinion
Crypto investments aren’t entirely SAFE right now due to high volatility and leverage-driven swings. It’s wiser to stay cautious, focus on Bitcoin, Ethereum, or top stablecoins, and use SIP or DCA methods for gradual entry. Avoid meme tokens and over-leveraged trades until cryptocurrencies stabilize.
Disclaimer: This is informational content and not advice. Users, please DYOR before investing. CoinGabbar is not responsible for any financial losses.
