Cryptocurrency markets entered the week with a cautious calm, as Bitcoin (BTC) stabilized above the $110,000 level and traders took a "wait-and-see" approach following hawkish signals from the US Federal Reserve last week.
Market Snapshot and Trader Sentiment
- BTC and ETH Trading: As the business week began, Bitcoin was trading near $110,300, and Ether (ETH) was near $3,880. Both assets remain down significantly over the last 30 days (10% and 14%, respectively).
- Deleveraging: Market activity is currently dominated by short-term trading and portfolio rebalancing. According to market maker FlowDesk, clients have "paused adding new risk," leading to a "cleaner market position" where many traders are now "underexposed if the market rebounds."
- Net Buying: Despite the overall caution, FlowDesk noted net buying interest in tokens with strong underlying fundamentals such as BTC, HYPE, and SYRUP.
Derivatives Market Signals Caution
While the spot market appears calm, the derivatives market suggests that fear still lingers:
- Liquidations: Approximately $155 million in crypto derivatives were liquidated in the past 24 hours, primarily from long positions ($97 million vs. $58 million in shorts). This points to a moderate flush of overly bullish bets rather than broad panic.
- Downside Protection: FlowDesk observed "elevated put skew"—meaning traders are actively buying put options and selling call options—indicating a desire to buy downside protection.
- Opportunity: This cautious positioning means volatility is likely to "drift lower into year-end." FlowDesk suggests that if the spot market stabilizes, "Cheap risk reversals" (a specific trading strategy) could become appealing.
Macroeconomic Context: Gold's Resilience
In the broader financial landscape, gold is maintaining its strength despite the Federal Reserve's hawkish stance and a stronger dollar, which typically pressures the metal:
- Performance: Gold closed Friday at around $4,003 per ounce, marking its third consecutive monthly rise with a 3.7% gain in October.
- Drivers: Strong demand for gold as a haven asset is being driven by persistent geopolitical tensions and ongoing U.S. fiscal uncertainty.
November 2025, Cryptoniteuae