The cryptocurrency market opened November with a sharp selloff, dragging Bitcoin below the $107,000 mark and causing widespread losses across altcoins. This downturn signals a shift in market sentiment, with a total market capitalization dropping about 3% to $3.69 trillion amid heightened volatility and fear among investors.โ
The selloff was triggered by hawkish remarks from Federal Reserve Chair Jerome Powell, who dampened expectations for further rate cuts after the October 25-basis-point reduction. His statement that another cut in December is โnot a foregone conclusionโ strengthened the U.S. dollar and curbed investor optimism in risk assets like crypto.
This cautious Fed stance led to over $395 million in liquidations within 24 hours, with more than 162,000 traders wiped out mostly long positions. Bitcoin alone saw $74.6 million in long liquidations, while Ethereum accounted for $85.6 million.โ
Altcoins were hit harder, with large-cap tokens like Uniswap and DOGE falling over 10%, deepening the negative momentum. Bitcoin ETFs also experienced significant outflows, with $1.15 billion withdrawn last week, adding to the downward pressure.โ