Bitcoin’s shaky October extended into the first week of November, as the broader outlook for crypto appears to be souring. On Tuesday, Bitcoin’s price dipped about 21% since its all-time high last month to roughly $99,000, while other cryptocurrencies fell even more sharply. And while Bitcoin has since clawed back over the key psychological $100,000 mark, some think the crypto sector’s remarkable run may be over for the time being.
The declines for Bitcoin and for other cryptocurrencies have been especially sharp over the past week. As of Thursday, Bitcoin slightly recovered to just under $103,000 but is still down roughly 5% in the last week. Ethereum is down roughly 12% to just under $3,372, and Solana is down about 19% to just under $158 during that time.
Ethereum and Solana—the most prominent non-Bitcoin currencies known as alt-coins—hit record prices earlier in the year but have come down significantly. The former has plummeted roughly 30% since August, while the latter is down about 41% since January.
Bitcoin boosters like to tout the asset as an independent gold-like store of value but, as it has in the past, the price has softened along with the rest of the economy. In the last week, the crypto market’s stumble has coincided with uncertainty over the Federal Reserve’s direction, and a decline in the S&P 500.
Meanwhile, the crypto market is still recovering from a flash crash on October 10 where traders experienced the worst crypto liquidation event in history, according to the analytics company CoinGlass. That day, exchanges liquidated more than $19 billion in leveraged positions. The flash crash followed Trump’s Truth Social post in which he said the U.S. would impose a 100% tariff on China, “over and above” any tariff they were already paying.
“The current weakness reflects a mix of [an ongoing effort by markets to digest] 10/10, slightly more hawkish Fed tone, and a broader risk-off across assets,” said Jasper De Maere, an OTC Trader at Wintermute.
Comments from Federal Reserve Chair Jerome Powell also affected crypto markets. At the end of last month, he hinted that the October rate cut could be the last one of the year. He said his colleagues had “strongly differing views” about future rate cuts and that, “there’s a growing chorus now of feeling like maybe this is where we should at least wait a cycle.” In the 24 hours following those comments, Bitcoin and Ethereum dipped about 1.6% and 2%, respectively.
On Tuesday, when Bitcoin slipped under $100k, many on social media were quick to voice their concern.
Some analysts also believe that crypto might be struggling for a while, “[Many long-term holders] who adhere to the four-year cycle theory…are selling positions, convinced that we are at or near the cycle top,” said James Butterfill, head of research at CoinShares.
Then there’s those in the crypto world who view Bitcoin dropping as just a reason to buy more of it.
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