cryptocurrency market November had a weak start. Bitcoin 
$104,050.19It saw selling pressure increase, falling below $105,000 after leaving behind its worst October month in the last decade. Ethereum 
$3,494.70, solana, XRP and other major cryptocurrencies lost value between 5 and 10 percent, while the total market value decreased by $100 billion to $3.6 trillion. Investors started to avoid risk again due to the cautious messages given by the Fed after the last interest rate cut.
Risk Appetite Weakened Due to the Fed Effect
Selling pressure hitting the cryptocurrency market Fed President Jerome PowellIt gained momentum after ‘s speech last week. Despite the 25 basis point interest rate cut, Powell emphasized that a new cut in December was not guaranteed, damaging investor confidence.
FxPro Senior Analyst Alex KuptsikevichStating that Bitcoin has tested its 200-day average many times, he said that the support level has now become fragile. According to Kuptsikevich, if the current structure is similar to the pattern in April, a new upward trend may occur in a short time. SynFutures CEO Rachel Lin He stated that the correction was a healthy consolidation process and that long-term investors were still saving.
fed According to data, the largest short-term liquidity injection since 2020 was made on Monday with a repo transaction of $ 29.4 billion. Although this liquidity injection did not mean a return to quantitative easing, it showed policymakers’ sensitivity to liquidity stress. Still, investors are watching to what extent the Fed’s soft landing rhetoric will bring new capital flows into the market.
Historically, the Hope for “Strong November”
CoinGlass according to data Bitcoin It shows that November was mostly positive for . The largest cryptocurrency, which has risen in November in 9 of the last 12 years, will test whether it can continue the historical trend this year. However, the realization of this depends on investors regaining confidence and the Fed’s monetary policy becoming clear.
The fluctuation in the markets was also reflected in the stocks and commodity markets. Gold retreated from its $4,400 peak as S&P 500 futures fell. Bond yields stabilized after the Fed’s liquidity step.
Over $1.3 billion leveraged in the last 48 hours liquidation of position made price movements even harsher. Although funding rates have returned to normal, the majority of investor positions are still defensive. The market’s regain of momentum will depend on the simultaneous recovery of both the technical picture and the macro outlook.
