NEW YORK, November 4: The price of Bitcoin fell sharply at the start of November, extending a broader sell-off in digital assets amid a cooling risk-on environment. The largest cryptocurrency dropped to around US$104,000 from recent highs above US$110,000. Data from crypto markets show that the slide followed a significant unwind of leveraged long positions, with more than US$1 billion in derivatives liquidations recorded in the past week. These losses were concentrated as trading volumes increased and support levels came under pressure. Risk appetite in global financial markets has softened as investors reassessed exposure to growth-driven assets, including those linked to artificial-intelligence themes.
Equities in the tech and AI sectors have experienced pullbacks, and the retreat in those markets appears to have coincided with the movement in crypto assets. In the past two days alone, Bitcoin declined by approximately 6 percent, reaching a low of roughly US$103,952. At the same time, other major tokens, such as Ether, declined by over 10 percent, reflecting a broader retraction in the digital-asset space. The freeze in buying momentum was noted by market participants. Institutional outflows from spot Bitcoin exchange-traded funds in the United States were significant, and retail buyers were noticeably less active in stepping in during the dips than in previous cycles.
Institutional outflows weigh on Bitcoin ETFs in the U.S.
Technical indicators were weighed down as well. Bitcoin broke below key support around US$108,000 and averaged falling trending near US$105,000 in early trading sessions. Analysts observed that the cryptocurrency’s correlation with tech risk assets remains high, and that the earlier assumption of its role as a hedge appears less evident in current conditions. Macro factors added to the pressure on crypto markets. The US dollar index rose above 100, lifting its value and placing additional headwinds on dollar-denominated risk assets. Meanwhile, remarks from the Federal Reserve underscored uncertainty about the timing of future rate cuts, contributing to an environment less favourable to high-growth and speculative assets.
Bitcoin drops to weakest levels since mid-year highs
The decline in Bitcoin also resonated across the altcoin market, where price drops were even steeper. On multiple exchanges altcoins underperformed Bitcoin, and the aggregate market value of digital assets dropped significantly during the recent sell-off. Market watchers highlight that November’s start did not follow the usual seasonal trend for crypto, where the final months of the year often see strength. Instead, the mood is characterised by caution and elevated volatility. The primary focus now lies on exchange-flow data, derivative liquidation trends and institutional fund movements to determine the depth of the correction.
Observers will also monitor broader macroeconomic indicators and risk sentiment as they relate to digital-asset valuations. The recent price behaviour of Bitcoin underscores how the cryptocurrency remains interconnected with broader financial markets, rather than operating as an isolated asset class, reflecting its sensitivity to shifts in global liquidity conditions, central-bank policy signals, and investor positioning across equities, bonds, and alternative assets. – By CryptoWire News Desk.