As Bitcoin (BTC), Ethereum (ETH), XRP, and Solana (SOL) capitulated on November 5, 2026, the crypto market capitalization flash-crashed by more than $120 billion.
The crypto market cap fell to $2.57 trillion at the time of reporting, down from $2.69 trillion on Wednesday. As a result, the total cryptocurrency market cap declined by roughly 4.46%, according to data Coinpedia analyzed from CoinMarketCap.
Crypto market cap change on November 5. Source: CoinMarketCap
The free-fall was driven by a significant selloff in top crypto assets. At the time of writing, Bitcoin, ETH, XRP, and SOL had shed 4.46%, 6.68%, 4.45%, and 5.9%, respectively.
Top 7 crypto assets by market cap on Thursday. Source: CoinMarketCap
Why is the Crypto Market Down Today?
The cryptocurrency market faced heightened selling pressure following renewed geopolitical tensions amid a broader bear market in the artificial intelligence (AI) stocks.
Over the past 24 hours, the Nasdaq-100 Index (NDX), an equity benchmark tracking the 100 largest non-financial companies listed on the Nasdaq Stock Market, plummeted to its lowest in 196 days.
NASDAQ 100 Index. Source: TradingView
As such, the cryptocurrency market faced increased selling pressure catalyzed by broader macro headwinds.
Most importantly, the crypto market experienced a long squeeze, a situation in which falling prices force long holders to sell, thereby accelerating the decline. Over the past 24 hours, the cryptocurrencies’ derivatives had recorded around $1.06 billion in total liquidations, with $934.73 million involving long trades, as per metrics from CoinGlass.
Cryptocurrency liquidation heat map on Thursday. Source: CoinGlass
What’s Next for Cryptocurrencies?
Even though the cryptocurrency market faced increased selloff fueled by a possible AI bubble burst, a possible bull run is expected before the end of this year.
Crypto analyst Ali Martinez believes the recent downtrend marked the ‘disbelief’ part of the bull cycle, thus signaling a potential recovery in the near term.