On November 5, 2026, the cryptocurrency sector experienced a dramatic drop as Bitcoin (BTC), Ethereum (ETH), XRP, and Solana (SOL) saw a capitulation, leading to a staggering loss of over $120 billion in market capitalization.
At the time of this report, the total market cap for cryptocurrencies had declined to $2.57 trillion, a sharp decrease from $2.69 trillion on Wednesday. This represents a loss of approximately 4.46% as per analysis conducted by Coinpedia using CoinMarketCap data.
Crypto market cap change on November 5. Source: CoinMarketCap
This sharp decline resulted from a significant selloff in major cryptocurrencies. As of the latest update, Bitcoin, ETH, XRP, and SOL recorded losses of 4.46%, 6.68%, 4.45%, and 5.9%, respectively.
Top 7 crypto assets by market cap on Thursday. Source: CoinMarketCap
What Led to the Decline in the Crypto Market?
The current downturn in the cryptocurrency market was primarily influenced by a wave of selling tied to renewed geopolitical unrest, coupled with a downturn in the broader artificial intelligence (AI) stock market.
In the past day, the Nasdaq-100 Index (NDX), which tracks the largest non-financial firms on the Nasdaq Stock Market, hit a low not seen in 196 days.
NASDAQ 100 Index. Source: TradingView
Consequently, the cryptocurrency market faced intensified selling pressure stemming from these overarching economic challenges.
Importantly, the crypto market also dealt with a long squeeze, where decreasing prices pressured long position holders to sell, further exacerbating the drop. In the last 24 hours, cryptocurrency derivatives recorded liquidations totaling approximately $1.06 billion, with around $934.73 million related to long positions, according to CoinGlass‘s data.
Cryptocurrency liquidation heat map on Thursday. Source: CoinGlass
What Lies Ahead for Cryptocurrencies?
Despite the ongoing selloff in the cryptocurrency market, which may be exacerbated by a burst in the AI bubble, analysts predict a potential bull market could emerge before year-end.
Crypto analyst Ali Martinez suggests that the current downtrend could represent the ‘disbelief’ phase within a market cycle, indicating a possible upturn in the near future.
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