Cryptocurrencies started the new week in negative territory, continuing the downtrend that has dominated the past several sessions. Bitcoin fell 3% in the past 24 hours to around $107,000, extending its 7.5% weekly decline.
The broader market also weakened, with most major altcoins facing heavier losses. Ethereum dropped to about $3,700, while XRP remained under pressure at $2.40. Solana slid to $175, and BNB declined to just above $1,000, down roughly 11% from a week ago.
Overall, the global crypto market capitalization decreased by 3.5% in the past day to about $3.59 trillion, marking another week of soft trading conditions. The weakness follows a brief period of stability in late October that gave way to renewed selling pressure after signals from the U.S. Federal Reserve dampened investor sentiment.
Read also: Bitcoin and Ethereum Slip After Second Fed Rate Cut
Sentiment
Market sentiment remains cautious. The Crypto Fear and Greed Index sits at 42, indicating “fear”, while the CoinMarketCap equivalent is even lower at 36. The readings confirm the mood of the past week, as traders have grown more risk-averse amid ongoing macroeconomic and policy uncertainty.
The latest wave of declines was accompanied by another round of long liquidations, reinforcing the market’s fragile positioning. According to liquidation tracking data, roughly $410 million worth of positions were cleared over the past 24 hours, largely concentrated in Bitcoin and Ethereum.
Read also: How To Use Crypto Fear and Greed Index To Your Advantage?
Policy and Macro Backdrop
The Federal Reserve’s rate cut last week failed to boost crypto markets, as investors interpreted the accompanying remarks as signaling fewer cuts ahead. Fed Chair Jerome Powell said further easing is “not a foregone conclusion”, which strengthened the U.S. dollar and weighed on speculative assets. The probability of an additional rate cut in December has since fallen below 70%, according to the CME FedWatch Tool.
Meanwhile, the U.S. government shutdown continues, now entering its fifth week. Betting markets on Polymarket show that few expect a quick resolution, with many predicting it could last through much of November. The prolonged shutdown has delayed several major economic reports and left parts of the Securities and Exchange Commission inactive.
However, some crypto ETFs – including new Litecoin and Hedera products – were automatically approved due to procedural rules that grant clearance if no response is issued within the review window.
Read also: Hedera and Litecoin ETFs Approved Despite U.S. Government Shutdown
Traditional Markets
In contrast to crypto’s downturn, U.S. stock futures started higher early Monday, extending October’s strong performance. Futures tied to the S&P 500, Nasdaq 100, and Dow Jones Industrial Average were up between 0.1% and 0.3%, supported by optimism surrounding corporate earnings and ongoing enthusiasm for AI-related stocks. The focus this week remains on economic data from private sources, as the shutdown continues to block official government releases.
Gold prices fell below the $4,000 mark after China removed certain tax incentives for retail gold purchases, signaling reduced demand from one of the world’s largest consumer markets. Analysts say the change could cool recent speculative activity in precious metals.
Read also: How to Invest in Gold: From Coins and Bars to Crypto Tokens
Outlook
The near-term outlook for cryptocurrencies remains cautious. While valuations are still historically high – Bitcoin remains above $100,000 and Ethereum above $3,500 – the combination of tightening liquidity, cautious central bank policy, and macro uncertainty continues to weigh on risk appetite.
The sentiment could improve if volatility subsides and policy clarity returns. However, for now, traders appear to be positioning defensively after several weeks of uneven performance and persistent geopolitical and economic uncertainty.
