Bitcoin price fell 3% to around $107,500, triggering $250 million worth of long liquidity in 24 hours. Selling pressure also weighed on major altcoins such as Ethereum and Solana.
However, on-chain data shows signs of abating selling, with Bitcoin outflows from Binance increasing significantly, indicating that investors are hoarding assets and not selling anymore.
The CBOE Volatility Index (VIX) has fallen 36% from last week’s peak, indicating that investor fears are easing, potentially supporting a crypto market recovery.
Meanwhile, the US government shutdown is expected to end by November 5, according to Polymarket data, and this move could accelerate the implementation of policies including the Fed’s rate cut.
However, Trump’s threat of a new 155% tariff on China has kept geopolitical pressure on, keeping the crypto market uncertain ahead of the Fed’s decision next week.
