The Federal Reserve’s recent actions and cautious messaging have contributed to a broader risk aversion across markets.
Bitcoin began November under pressure after closing out its worst October in ten years, slipping below $105,000 earlier Tuesday as selling across majors deepened in the wake of last week’s Federal Reserve decision.
BTC has fallen 2.8% in the past 24 hours, while ether is down 6% to around $3,630. Solana led losses with a 10% slide to below $160, extending its seven-day drop to more than 20%. BNB lost 6.4% and XRP shed 5%, while DOGE$0.1653 and Cardano’s ADA dropped roughly 6% each.
The broad-based decline shaved another $100 billion off total crypto market capitalization, now hovering near $3.6 trillion.
“The crypto market is attempting to break through its local bottom,” said Alex Kuptsikevich, chief market analyst at FxPro. “Bitcoin’s repeated tests of its 200-day moving average suggest fragile support, and a deeper retracement can’t be ruled out. Still, if the structure mirrors April’s pattern, buyers could soon find footing for another upward move.”
October’s 4.5% decline snapped Bitcoin’s long streak of positive “Uptober” finishes and underscored just how much macro caution has returned. The Federal Reserve’s 25-basis-point cut last week was widely expected, but Chair Jerome Powell’s restrained tone dampened risk appetite after he hinted that December’s cut isn’t guaranteed.
“Bitcoin’s first red October in seven years has certainly caught attention, but I see it more as a healthy reset than a structural reversal,” said Rachel Lin, CEO of SynFutures. “The current pullback feels more like consolidation within a broader uptrend. Long-term holders are still accumulating, and ETF flows remain steady.”
Fed data showed a $29.4 billion repo operation on Monday — the largest since 2020 — injecting short-term liquidity into the U.S. banking system and helping to stabilize broader risk sentiment. While not a return to quantitative easing, the move signaled that policymakers remain attentive to liquidity stress.
Historically, November has been one of Bitcoin’s strongest months, with gains in nine of the past 12 years. Whether that seasonal trend holds may depend on how quickly traders regain conviction — and whether the Fed’s “soft pivot” narrative translates into renewed capital flows for crypto.
The drawdown mirrors broader risk aversion across equities and commodities as investors reassess the Fed’s cautious messaging and ongoing geopolitical uncertainty.
Meanwhile, futures tied to S&P 500 traded lower on Tuesday, while gold continued its retreat from record highs near $4,400, erasing a portion of last month’s haven-driven rally. Treasury yields, meanwhile, steadied after briefly dipping on the Fed’s liquidity injection.
Thin weekend order books and aggressive unwinding of leveraged longs have amplified each downside move, with more than $1.2 billion in liquidations recorded over the past 48 hours. Funding rates have normalized, but positioning remains defensive.
