Dollar comeback & crypto liquidations — Thursday, Nov 6, 2025

The U.S. dollar got stronger this week. When the dollar rises, it usually makes investors more careful with “riskier” assets. Crypto felt that pressure: prices pulled back, and many leveraged trades were closed by exchanges as protection, which added speed to the move.

Forced closes: a lot of traders were betting on higher prices. As the market fell, those positions were shut automatically (liquidations). This created a chain reaction: lower prices → more forced closes → lower prices again. That helped turn a normal dip into a faster drop.

Why the dollar matters: crypto is priced in dollars. A stronger dollar can make people less willing to take risk and can pull money away from assets like Bitcoin and Ethereum. If the dollar cools down, crypto usually breathes a bit easier.

Flows & mood: some U.S. crypto funds showed outflows this week, and stock markets also looked shaky. Together, that kept the mood cautious. If those outflows slow and headlines calm down, price swings can settle.

Near-term view: watch two simple things: the dollar and leverage. If the dollar pauses and traders avoid heavy borrowing, the market can try to build a base and bounce in steps. If the dollar keeps climbing and traders pile back into big bets too quickly, expect choppy days and sudden moves in both directions.

Bottom line: this pullback looks more like a currency story plus crowded positions than a change in the long-term trend. The next few sessions will likely be about patience—less leverage, and close attention to the dollar.