The crypto market is falling: reasons and forecasts

The cryptocurrency market continues to show negative dynamics, and there are several compelling reasons for this. While the US shutdown continues, relations between Donald Trump and China remain tense, and the Federal Reserve is in no hurry to lower interest rates, shares of American tech giants are also losing value. Against this backdrop, cryptocurrencies continue to decline.

Bitcoin Under Pressure

From October 31 to November 7, 2025, Bitcoin (BTC) fell 6.61%. During trading on November 4, the largest cryptocurrency by market capitalization fell below $99,000, the first time this has happened since June 22.

According to Citigroup analyst Alex Saunders, the main problem for Bitcoin this week was the actions of large market players known as "whales." The number of addresses holding significant amounts of BTC is declining, while the number of small holders is growing. This indicates that large capital has begun selling off its Bitcoin holdings.

ETF Outflows

Saunders' data is supported by spot Bitcoin ETF statistics. Last week, ETFs recorded outflows in three consecutive sessions. Investors withdrew money from funds over six days from October 29 to November 5, the longest streak since August. This indicates a decline in investor confidence in further BTC growth.

Market Nervousness

Nervousness among Bitcoin holders can be explained by the fact that almost a third of them (more than 28%) are currently losing money. Analysts at the CryptoQuant platform note that the longer the price remains under pressure, the higher the likelihood of a further decline.

Technical Analysis

From a technical analysis perspective, Bitcoin's trend remains downward. The price is below the 50-day moving average, and the relative strength index (RSI) has fallen below 50, although it has not yet reached oversold territory. Support and resistance levels on the daily chart also indicate possible further price fluctuations.

What's Next?

Given current economic conditions and market sentiment, experts predict that cryptocurrencies may continue to decline in the short term. Investors should closely monitor changes in the macroeconomic situation and the actions of major market players to make informed decisions.