Bitcoin Liquidations Highlight Market Volatility
Bitcoin enters November following its first negative October performance in six years, prompting observers to question whether the downturn signals a deeper bearish trend or merely a temporary market correction.
Bitcoin has fallen 1.4% in the past 24 hours, trading near $107,000. This decline contributed to a 2.2% drop in the total cryptocurrency market capitalization, which now stands at $3.64 trillion, according to CoinGecko data.
The recent sell-off also triggered over $1.16 billion in long liquidations on November 3, highlighting the scale of the ongoing leverage unwind in the market.
Macro Factors in Play
October’s decline, sometimes referred to as “Red October,” occurred amid a complex macroeconomic backdrop. Federal Reserve Chair Jerome Powell announced the end of quantitative tightening and hinted at potential rate cuts. However, subsequent remarks moderated expectations for a December reduction, adding to market uncertainty.
“Uncertainty around macroeconomic policy has pressured risk assets, with Bitcoin’s U.S.-session returns cooling significantly from 0.94% on October 29 to -4.56% over the past week,” according to Velo data.
Geopolitical tensions have eased somewhat following the Trump-Xi agreement, which temporarily paused threatened tariffs and extended a fragile truce between the United States and China. This development provided relief in broader financial markets, though volatility persists.
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