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Bitcoin fell below $104,000, triggering over $1.3 billion in liquidations, most of which came from leveraged long positions. This drop occurred in a context marked by ongoing Bitcoin ETF outflows, long-term holder selling, and growing risk aversion across global markets. Analysts believe the market remains in a fragile phase: as long as prices fail to stabilize above key levels, declining confidence and mounting time pressure could weigh further on buyers.
The negative trend spread across the entire crypto market: Ethereum lost about 6%, Binance Coin 8%, and Solana nearly 10%, bringing total market capitalization down to around $3.6 trillion. Spot Bitcoin ETFs recorded four consecutive days of net outflows, while Ethereum ETFs faced similar withdrawals. Only Solana attracted capital inflows, suggesting residual speculative interest in more volatile assets despite the broader downturn.
The crypto Fear and Greed Index dropped to 21, reflecting heightened investor anxiety. Since the October 10 crash, a combination of macroeconomic uncertainty, the U.S. government shutdown, and reduced global liquidity has pushed traders to scale back their exposure to risk. Still, some observers note that the successful launch of the Solana ETF could restore some momentum if U.S. fiscal conditions stabilize and confidence returns.
From a technical perspective, on-chain data and derivatives markets confirm declining depth and volume, amplifying volatility. In the short term, the 50-week moving average—around $102,500—remains a key support that sustained the previous bull market.
Historically, Bitcoin has shown us that the best buying opportunities emerge when market confidence is at its lowest. We remain confident that the psychological threshold of $100,000 will not only hold but could also trigger a trend reversal. With both U.S. stock markets and gold still in an upward trend, this scenario appears at the very least plausible.
The current crisis also finds its roots in the DeFi sector, where several protocols have suffered major losses. Stream Finance disclosed $93 million in lost assets, bringing total bad debt in DeFi to roughly $284 million. This event reignited contagion fears: multiple stablecoins and automated vaults were forced into redemptions, increasing pressure across the market. These incidents follow a string of recent setbacks—including a $128 million hack on Balancer—that had already eroded investor confidence.
Internal market fears are compounded by macroeconomic headwinds: disappointing U.S. employment data, a more hawkish tone from the Federal Reserve, and uncertainty surrounding the partial government shutdown. This combination of factors triggered a wave of liquidations across all risk assets, including cryptocurrencies. Analysts note that bond market instability has also contributed to the overall nervousness.
Despite this stressful phase, some observers see potential for stabilization. They argue that the current leverage “flush-out” could help cleanse the market and lay the foundation for a more sustainable recovery once the DeFi contagion is contained and macro conditions become clearer. While volatility is likely to remain high in the short term, this reset could ultimately pave the way for a healthier and more resilient accumulation phase.
According to Rachel Lin, CEO of SynFutures, this correction represents a “cycle reset” rather than the end of an uptrend. She believes October could act as a springboard for a bullish rebound, as has often occurred in the past. Historically, November has been one of Bitcoin’s strongest months, with an average return of 42% over the past 12 years.
Outlooks for year-end remain broadly positive: if the typical post-halving pattern continues, Bitcoin could reach a range between $120,000 and $150,000 by the end of 2025. Inflows into ETFs and sustained structural on-chain demand support this optimistic scenario. Analysts expect a period of stabilization in early November, followed by renewed bullish momentum once the Fed adopts a more accommodative stance.
The newly launched Solana spot ETFs made a spectacular debut in the United States, attracting roughly $200 million in net inflows during their first week of trading. Bitwise’s product, BSOL, emerged as the star performer with nearly $420 million in total flows (including seed capital), far surpassing all other crypto ETFs combined over the same period. Within just a few days, BSOL became one of the top-performing funds on the New York Stock Exchange. Grayscale, which launched GSOL a day later, saw more modest inflows of about $2 million, though it already manages over $100 million in assets thanks to initial capital.
Both funds also stand out for their staking mechanisms: they delegate their Solana tokens to generate additional yield. Grayscale plans to redistribute 77% of net staking rewards to investors, while Bitwise follows a similar approach with lower management fees (0.2% versus 0.35% for GSOL). The rapid success of these products reflects strong institutional appetite for Solana, already bolstered by a competing ETF, REX-Osprey’s SSK, which manages around $400 million in assets since launching in July.
Meanwhile, Bitcoin and Ethereum spot ETFs also posted a strong October. Bitcoin funds recorded $3.61 billion in inflows, slightly above September, while reaching a record $133.45 billion in monthly trading volume—an 83% increase. Ethereum funds achieved their second-highest monthly volume ever, with $55.25 billion in trades and $668 million in net inflows, bringing total assets under management to over $25 billion, representing about 5% of all ETH in circulation.
Overall, these figures confirm the growing dominance of institutional crypto products. While Bitcoin and Ethereum maintain their leadership, Solana has emerged as the new favorite among next-generation ETFs, attracting massive capital in its debut week. This momentum underscores rising investor interest in assets that combine staking yields with direct blockchain exposure, in an increasingly regulated and structured financial landscape.
The monthly transaction volume of stablecoins on Ethereum hit a new all-time high of $2.82 trillion in October, up 45% from September. This surge reflects renewed activity around stable assets even as the broader crypto market cooled after months of exuberance. Investors seeking steady returns amid widespread profit-taking have increasingly shifted capital toward income-generating instruments such as yield farming and liquid yield tokens. Circle’s USDC leads the market with $1.62 trillion in volume, followed by Tether’s USDT at $895 billion. Both saw significant increases in usage, while MakerDAO’s DAI declined slightly to $136 billion, well below its May peak. According to Min Jung of Presto Research, enthusiasm for stablecoins intensified following Circle’s IPO and the passage of the Genius Act, which strengthened confidence in the sector.
This uptick came as Bitcoin and Ethereum fell 11.5% and 16.4%, respectively, in October. Vincent Liu, CIO of Kronos Research, said the surge in stablecoin volumes reflects strategic liquidity management: traders are parking profits in stablecoins to re-enter the market later, while earning yield through staking or DeFi lending. Stablecoins thus serve as a temporary hedge against volatility while generating passive income. Meanwhile, issuers like Tether and Circle have become the top revenue generators in the entire crypto ecosystem, capturing 65–70% of daily sector revenues in October—outpacing lending platforms, DEXs, and infrastructure projects. Their dominance stems from investments in U.S. Treasuries, which provide steady interest income. According to Nick Ruck of LVRG Research, this trend underscores the crypto market’s maturation, as stablecoins see increasing use for real-world payments and cross-border transfers beyond speculation.
The European Central Bank (ECB) has been instructed to accelerate the development of its digital euro, its version of a central bank digital currency (CBDC). Under the current timeline, a pilot project would launch in mid-2027, followed by a full rollout in 2029—provided the European Parliament passes the necessary legislation by 2026. ECB President Christine Lagarde confirmed that the institution is entering the “final phase” of the project, emphasizing that the initiative aims to digitize fiat money while reinforcing monetary sovereignty across the eurozone. Unlike stablecoins, the digital euro will not rely on a public blockchain but will instead run on an infrastructure fully controlled by the ECB, incorporating select design principles from distributed ledger technology for security and transparency. The total development cost is estimated at €1.3 billion, with annual operating expenses of around €320 million.
However, the project faces skepticism from the crypto community. Many advocates of decentralized assets fear that CBDCs could increase central bank control over users by enabling fund freezes and transaction monitoring. These concerns contrast with the growing role of private stablecoins such as USDT and USDC, which can also freeze wallets tied to illicit activities. On the global stage, Europe is part of an ongoing CBDC race: China, India, and Russia have already begun pilot programs, while Nigeria launched its eNaira in 2021. The United States, by contrast, has banned a federal CBDC under President Trump, favoring private stablecoins through the GENIUS Act and the World Liberty Financial initiative. This policy divergence has reinforced the dominance of the digital dollar, with USD-backed stablecoins now exceeding $300 billion in market capitalization, while euro-backed initiatives struggle under tighter European regulation.
The company Strategy (formerly MicroStrategy) took advantage of Bitcoin’s recent price dip to further expand its holdings, purchasing 397 BTC for about $45.6 million at an average price of $114,771 per coin. Although one of its smaller acquisitions this year, the move aligns with its long-term accumulation strategy. The firm now holds 641,205 BTC, worth approximately $69.1 billion, solidifying its position as the largest institutional holder of Bitcoin. Since pivoting to the asset in August 2020, Strategy has invested roughly $47.4 billion in Bitcoin, originally as a hedge against inflation and to enhance shareholder returns. The bet has paid off in the long run, with the company’s stock rising over 1,700% since its initial purchases. Strategy’s approach has inspired other corporations to add cryptocurrencies such as Bitcoin and Ethereum to their balance sheets to boost market valuation.
Finally, despite short-term panic and a deepening downtrend, some analysts view this correction as a healthy market reset. If Bitcoin manages to stabilize around its 50-week exponential moving average, near $102,000, it could establish a solid base for a future rebound. For now, caution prevails as traders closely monitor the critical $100,000 support level—whose loss would likely confirm a temporary shift in trend.
The presented information is as of November 4th, 2025, unless otherwise indicated and is provided for information purposes only. The information comes from sources that we believe are reliable, but not guaranteed. This statement does not provide financial, legal or tax advice. Rivemont Investments are not responsible for any errors or omissions in the information or for any loss or damage suffered.
