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🧊 BTC Slips Below $100K as Liquidity Tightens

BTC fell below $100K as the 36-day U.S. shutdown locks the Treasury’s wallet. ETFs slow, whales sell, and fear hits 19. Plus: DOGE-1 rockets 300%, XRP ETF in sight, and altcoins face a cold winter.

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Cryptopolitan News
November 05, 2025 • Estimated Reading Time: 7 minutes

Bitcoin dropped $100K as Wall Street grapples with its own reckoning

Bitcoin sank below the $100,000 mark for its lowest point since June, as a U.S. government shutdown reached record-setting ground and a furious wave of political anxiety gripped investors from D.C. to Wall Street.

The shutdown is in its 36th day, a deep freeze that has choked off government spending and the flow of Treasury liquidity. Though the Fed is waiting to telegraph a clear signal for December, traders are quickly losing faith.

BTC crashed over 6% in a single session and under $126K, more than 20% below the October peak. The selloff is largely being driven by the biggest holders of the tokens, known as whales. Billions in BTC transferred from cold wallets to exchanges:

Ed Engel of Compass Point notes more than 1m BTC sold by longs since June; ETF inflows have slowed down dramatically. “$95K is supported, but there are no strong catalysts around,”

The Crypto Fear & Greed Index has collapsed to 19 (Extreme Fear). Fundstrat still has a year-end BTC target of $150K-$200K and calls that “volatility we’ll have to live with.”

🏛️ Political outlook

Washington is paralyzed, New York City just elected Zohran Mamdani, a progressive firebrand who denounces capitalism, and Wall Street has entered full-blown panic mode.

Mamdani’s victory has become symbolic of this shift in economic sentiment, from looking on the speculative side to fearful. In a week when Bitcoin drops, stocks wobble and faith in the institutions of American politics withers, investors read the broader message: Power and capital are getting re-priced.

TL;DR

  • Shutdown = liquidity lockup: The Treasury is locked from spending money, delaying liquidity tailwinds for risk assets.

  • Wall Street panic = sentiment shock: The political weather has tilted against big money.

  • Bitcoin under $100K = mental break: Long-term holders are selling, retail is feeling quiet.

📊 Market Watch

1️⃣ Lummis: The Clarity Act could redefine U.S. crypto law

The Wyoming Senator Cynthia Lummis dubbed the Clarity Act “the most important crypto bill in U.S. history”, one that could put an end to years of regulatory uncertainty at last.

That bipartisan effort, which is targeting a Banking Committee vote by year’s end, would effectively carve up oversight between the SEC and CFTC and clear the way for banks to legally custody digital assets.

2️⃣ Altcoin winter deepens

On-chain data shows that the altcoin rally is over as traders continue to stockpile conversion fuel. Smaller tokens, meanwhile, are down 35–50% YTD, with new wallet creation and trading activity at six-month lows.

The Altcoin Season Index is at 41, showing no-one is going (26:28) either BTCs or altcoins way, it’s a neutral drift we had in the crypto winter of 2019.

3️⃣ Humanity protocol teams up with Mastercard for On-Chain ID

Humanity Protocol, which is based on zero-knowledge cryptography, is being released alongside as Mastercard’s Open Finance system and will introduce its Human ID – an on-chain digital identity.

Human ID is designed for cross-platform verification, using one identity across all blockchain and centralized systems. Rollout starts in the U.S. before a global expansion.

“We believe that identity is foundational to the future of finance,” said Terence Kwok, Founder of Humanity Protocol.

🤯 What Just Happened

Elon Musk pumped a meme. Again.

One post on X, just a couple of words, “it’s time”, and the DOGE-1 memecoin skyrocketed 300% Monday to transform an otherwise dead Solana token to the week’s most-watched chart.

DOGE-1, a token linked to SpaceX’s scheduled lunar satellite mission, and had plummeted to an all-time low of $0.000282 before Musk’s post shot it into the outer atmosphere. The token’s market capitalization surged 367% in a matter of 24 hours to $9.1M, peaking briefly at $0.0011 before cooling to approximately around $7.2M

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