Bitcoin had a bad start in November: Below $105,000.

Bitcoin started November poorly with recent developments. The price of Bitcoin, which fell below the $105,000 level, experienced downward pressure after U.S. Federal Reserve Chairman Jerome Powell did not guarantee any interest rate cuts in December, leading to a decrease in risk appetite.

Finishing October with its worst performance in the last decade, Bitcoin began the new week under this pressure. The price of Bitcoin, which lost 2.8% in the last 24 hours, continues to trade below the $105,000 level. Other major crypto assets also experienced similar declines. Ethereum dropped to $3,630, while Solana fell below $160 with a 10% decline. Altcoins like BNB, XRP, Dogecoin, and Cardano recorded losses between 5-6%. With these declines, the total cryptocurrency market value shrank by approximately $100 billion to reach $3.6 trillion in the last 24 hours.

FxPro analyst Alex Kuptsikevich noted that Bitcoin testing its 200-day average several times signals weak support. However, he indicated that if a structure similar to that of April were to repeat, buyers could re-enter the market. In this context, market investors may face a challenging period.

One of the reasons for the recent declines was the disruption of the “Uptober” series caused by the Fed's 4.5% drop in October. The market did not experience the expected recovery after the Fed's 25 basis point rate cut, and Powell's message that “the December cut is not guaranteed” prompted investors to remain cautious. SynFutures CEO Rachel Lin assessed this situation as a “healthy correction within the overall uptrend.”

Additionally, the Fed's execution of a $29.4 billion repo transaction on Monday was noted to be the highest amount since 2020. This liquidity move aims to contain panic in short-term risky assets. Historically, November has stood out as one of the strongest months for Bitcoin. Whether Bitcoin can sustain this successful statistic, whereby it has gained value in 9 out of the last 12 years, depends on how the Fed’s “soft landing” narrative reflects on capital flows.

Lastly, weekend trades executed with weak volume and the liquidation of long positions deepened this decline. Over $1.2 billion in leveraged positions were liquidated in the last 48 hours, and although funding rates have normalized, investors prefer to remain defensive.