Bitcoin’s price fell 2% in early Asian trading, dropping below $107,000 as selling momentum from a volatile October continued into the new month. The downturn reflects a cautious market sentiment influenced by whale profit-taking and sustained outflows from exchange-traded funds (ETFs). The broader crypto market followed suit, with Ether declining 2.7% to $3,636 and XRP dropping 3.4% to $2.35.

Institutional Demand Shows Signs of Easing

On-chain data supports the market’s wary mood. According to Charles Edwards, founder of Capriole Investments, institutional demand has dipped below the rate of new coin issuance for the first time in seven months. This shift suggests that large-scale buyers are stepping back, contributing to a broader risk-off stance across digital assets.

This cooling institutional interest in crypto contrasts with a more positive picture in traditional equities. Major stock indexes climbed after Amazon announced it would supply cloud services to OpenAI. In Asia, gains in tech shares pushed Japan’s Nikkei and Taiwan’s TAIEX to record highs.

Fed Signals Caution as Rate-Cut Bets Fade

The macroeconomic environment continues to be a key factor. While the Federal Reserve implemented an expected rate ease last week, Chair Jerome Powell noted that another cut in December was “not a foregone conclusion.” This tempered expectations for more aggressive dovish policies. As a result, market pricing for a 25-basis-point cut next month has fallen from 94% to approximately 70% in one week.

Markets Seek Stability After October Leverage Flush

The recent price action is also a consequence of October’s significant market shakeout, which saw a $19 billion liquidation event on October 19. That wave drained significant leverage from the system, and analysts believe the market is now in a consolidation phase.

“In many ways, October’s correction has done what it needed to: it has flushed out leverage and re-set sentiment,” said Rachel Lin, CEO of SynFutures. She highlighted that on-chain data shows long-term holders are accumulating, not selling, and that steady exchange outflows are a historically constructive sign. Lin suggested that November could begin with sideways trading as markets digest the Fed’s commentary, but a clearer easing message could spark a recovery.

Qwen3 AI Wins Trading Competition with BTC Strategy

In other news, the first season of the AI Crypto Trading Competition concluded with Alibaba’s Qwen3 model securing first place. The AI achieved a 20% overall return by employing a disciplined, all-in Bitcoin strategy, holding the asset at an average price of $105,800. DeepSeek finished second after its profits were diminished by its long exposure, while GPT5 and Gemini, which used short-biased strategies, ended at the bottom of the rankings despite a slight recovery.

Disclaimer: The information provided in this article is for informational purposes only and does not constitute financial advice, investment advice, or any other sort of advice. You should not treat any of the website’s content as such. Always conduct your own research and consult with a professional financial advisor before making any investment decisions.