This Week in Crypto: Bitcoin Pulls Back as Markets Reset
Bitcoin Price Correction Tests Market Strength
Bitcoin experienced a sharp decline on November 3, 2025, falling below $108,000 after struggling to maintain momentum above $110,000. The broader cryptocurrency market capitalization dropped nearly 3% as Bitcoin, Ethereum, and major altcoins declined.
Market observers described the liquidation wave as significant but not catastrophic, noting that the purge of overleveraged positions appeared to be a moderate flushing rather than panic capitulation. Over $400 million in liquidations occurred within 24 hours as traders unwound heavily leveraged positions from October.
The pullback comes after Bitcoin reached near-record highs earlier this year. Traders described the session as a healthy deleveraging phase after weeks of aggressive long positioning. Technical analysts are now watching whether support holds in the $107,000 to $108,000 range.
Federal Reserve Stance Creates Headwinds for Bitcoin
The U.S. Federal Reserve cut interest rates by 25 basis points in October, bringing the benchmark rate to 3.75% to 4.00%. However, Fed Chair Jerome Powell’s cautious tone disappointed markets. Powell stated that another rate cut in December isn’t a foregone conclusion, boosting the U.S. dollar and cooling investor sentiment.
The FedWatch Tool now shows the probability of another rate cut has fallen to 69.3%, reflecting growing doubts about further policy easing. A stronger dollar and diminished hopes for quick Federal Reserve rate cuts served as immediate drivers of the market decline.
This shift in monetary policy expectations has created challenging conditions for risk assets like Bitcoin. The higher-for-longer scenario encourages investors to take profits and park capital in stablecoins or cash positions until clarity returns.
Institutional Demand Shows Signs of Cooling for Bitcoin
BlackRock’s spot Bitcoin ETF has seen less than 0.6K BTC in weekly net inflows over the past three weeks, a steep decline from the over 10K BTC weekly inflows that preceded major rallies earlier this cycle. Bitcoin ETFs continue to see heavy outflows, with significant sell pressure from traditional finance investors indicating a drop in institutional demand.
UK-based Farside Investors reported approximately $191 million exiting spot Bitcoin ETFs, highlighting broader market hesitancy. The slowdown signals that large investors may be turning cautious amid market uncertainty and profit-taking.
Despite these challenges, some positive indicators remain. Bitcoin’s realized cap is above $1.1 trillion, and stable on-chain activity signals continued long-term strength heading into November. Stablecoin demand is quietly rising, with USDT, USDC, and USDe now making up nearly 3% of total market capitalization.
Bitcoin Price Outlook Remains Mixed for November
Bitcoin’s November 2025 price trajectory is poised at a crossroads of historical seasonality, macroeconomic shifts, and geopolitical uncertainty. Historical data shows November as one of Bitcoin’s strongest months, with an 11.2% median return.
However, this year may prove different. Global trade tensions, inflation, and recession fears have weighed heavily on all risk assets, and Bitcoin hasn’t been spared. The Federal Reserve’s November rate cut and December QT end could boost liquidity, while U.S.-China trade shifts create dual-edged volatility risks.
Technical analysts are watching key levels closely. If Bitcoin breaks above $117,000, momentum could drive it toward $120,000 to $140,000, but losing $111,000 support risks a pullback toward $110,000. JPMorgan projects a $165,000 year-end target if Bitcoin reclaims $110,000 and trade tensions remain contained.
Market Reset Creates Opportunities for Bitcoin Recovery
The current market conditions reflect a necessary reset after months of strong gains. The wave of profit-taking played a major role in market weakness following the strong Q3 rally, with analysts saying the move reflects a natural market reset.
Several factors could support recovery. Stablecoin balances growing imply capital waiting for re-entry, historically a pattern that often precedes renewed accumulation. Attention now turns to a packed week of U.S. economic data, including job openings, private payrolls, and inflation expectations.
Conclusion
If macro conditions stabilize and traders regain confidence, November could end with Bitcoin reclaiming momentum toward $115,000. The market remains highly sensitive to macroeconomic cues, making upcoming data releases critical for direction.
