What happened?
Bitcoin slid below $108,000 at the Asian open, snapping the “Uptober” rally and extending a risk reset that started late last week. Traders pointed to a firmer dollar and fading hopes for faster Fed rate cuts after cautious comments from officials. Thin holiday liquidity and forced unwinds of leveraged long positions amplified the sell-off, pushing major tokens and total crypto market cap down around 3%.
Who does this affect?
Leveraged traders and derivatives desks were hit hardest, as margin calls and forced liquidations magnified price moves. Both institutional and retail holders who were betting on quick policy easing saw positions repriced and risk tolerance tested. The broader crypto ecosystem now faces higher short-term volatility, affecting spot traders, funds, and market makers ahead of key US data this week.
Why does this matter?
This episode highlights how sensitive crypto is to Fed signals and dollar strength, meaning shifts in rate expectations can trigger big swings. Deleveraging and thin liquidity can exaggerate downturns even when on-chain activity looks resilient, raising near-term downside risk. That makes investors more cautious heading into upcoming US jobs and inflation prints, which could set the next direction for markets despite a historically supportive November seasonality.