Bitcoin has experienced its fourth consecutive weekly decline, as reported by Bitfinex Alpha, a notable event not seen in more than 500 days. Over the last month, Bitcoin has faced a significant drop of 30.6%, exceeding the 24% pullback observed during its consolidation phase in 2024. The total decline from its all-time high now stands at nearly 36%. The downturn is clearly reflected in both Bitcoin’s price charts and the on-chain activity. Short-term holders, often reactive to market fluctuations, are surrendering at rates reminiscent of the FTX collapse in 2022. Recent buyers are facing realized losses that have skyrocketed to $523 million per day, underscoring the market’s susceptibility within the $106K–$118K range.
Moreover, Bitcoin reached its peak ahead of equities earlier this year, a trend that may indicate possible corrections in conventional markets. Crypto derivatives markets have faced significant turmoil, with losses amounting to $19.2 billion reported on October 10th, followed by an extra $3.9 billion in the previous week, highlighting the strain within futures and perpetual markets. November has consistently proven to be a favorable month for Bitcoin, with an average gain of 40% over the last ten years. However, this year it is tracking at a negative 21.3%, and October marked its first negative close in seven years.
The broader U.S. economic landscape is exhibiting signs of moderation, characterized by stable but cooling labor conditions alongside cautious consumer spending trends. Housing indicators continue to paint a bleak picture, as builder confidence shows signs of contraction and buyer traffic remains weak. The White House is currently moving forward with its examination of an IRS proposal to align with the OECD’s global Crypto-Asset Reporting Framework, seeking enhanced scrutiny of Americans’ offshore assets.
In a significant move, El Salvador has executed a historic one-day acquisition of 1,090 BTC, amounting to around $100 million as part of its sovereign adoption strategy. These developments highlight the continuous alignment of regulations and the strategic positioning of nations within the cryptocurrency arena.