Crypto Market Overview
Market Pressure Across Major Assets
Risk assets are under a lot of pressure at this point and Bitcoin, Ethereum are not left out. Ethereum dropped 6.41%, losing the $3,000 mark. Bitcoin is also struggling, down 2.91% and the top 100 coins on coin market cap are under a lot of pressure. Just a few stable coins are showing in the green.
Key Headlines In The Market
The British regulator and financial conduct authority, the FCA, has launched a wide ranging consultation on proposed rules for the crypto industry today, a day after the government said the industry would be regulated from October 2027. The FCA set out its proposals alongside research that shows that the proportion of UK adults holding crypto has fallen by a third from 12% to 8% in the past year.
Institutional Moves And Liquidations
JP Morgan And Tokenized Funds
JP Morgan is making a major move into digital finance. The banking giant has launched a tokenized money market fund on Ethereum’s blockchain, bringing traditional investment products to the blockchain and expanding access for institutional and retail investors. Analysts say the initiative marks a significant step in bridging conventional finance with the growing world of digital assets.
Market Liquidations And Investor Impact
Over $584 million in leverage cryptocurrency positions were liquidated in a sudden market squeeze, overwhelming and hitting investors betting on price increases. Most of the long positions in the market were affected.
Analyst Perspective On Crypto Performance
Yearly Performance And Asset Comparison
This year has turned out bad for crypto assets. When you rank it among major assets including stocks, commodities and currencies, the return on crypto has been surprisingly bad. That’s coming from the backdrop that bookmakers felt that a pro bitcoin president in the world’s most powerful economy would translate into liquidity.
Factors Behind Market Weakness
We’ve seen a cascade of liquidation and losses in the space because of three major things. First, the meme coin space, the erratic situation of that asset class, scams, rugs and other dark plays in that space had eroded confidence in the risk asset class. Secondly, central banks were playing more on gold than bitcoin despite the fact that the United States spoke about using bitcoin as a strategic asset for safety. Lastly, despite the fact the US Fed sounds dovish, investors are weary that there are so many assets in that space and it’s very hard to give a track.
Investor Sentiment And Asset Declines
Bitcoin is red year to date. Ethereum is also red year to date. Many meme coins are down and also popular coins like XRP, Cardano, Polka Dot and the likes. Privacy coins surprisingly had a good run in last quarter but that has been diluted and that’s pretty much the fact that liquidity is going up. But interestingly if you look at data from glass node, the number of bitcoin holders, long-term bitcoin holders have dropped by a million because right now we have about 14.3 million bitcoin long-term holders and when you look at the July rally we had over 15 million.
Liquidity And Holder Trends
Long Term Holder Data
The long-term holders are taking out liquidity which is not impressive. The market has not gotten the confidence that we had when President Trump came to power. Looking at it from a historical view, November has not been a good month for crypto assets.
Confidence And Market Outlook
We have festivities coming up next week. Some investors would like to take out some money to have fun. This is expected. But what a lot of market tacticians and technicians are worried about is the fact that this year we had the worst liquidation ever in the crypto space.
Seasonal Trends And Corrections
Investor Behavior During Festivities
At some point in October over 10 billion was wiped out. We never had that ever in the crypto space ever since historical data covered such asset class and that tells you that we are seeing fear.
Support Levels And Price Ranges
For the market to bounce, there has to be a deep correction. A downward trend towards the 75 to 68 support level might bring in buyers. But if that doesn’t happen, we might see the asset Bitcoin ranging between the 80,000 support to the 95,000 resistance throughout this month.
Bitcoin And Ethereum Outlook
Bitcoin Trading Range
Ethereum has lost that $3,000 mark at this point. What’s helping Ethereum right now is institutional play. After it dropped to its low around 105 in the second quarter, it bounced back interestingly when listed American companies went into it. Institutional investors have a key role.
Ethereum Support And Institutional Role
If it can hold 2,800 rather than the 3,000 because that mark corresponds with the moving average, the 20 day moving average. If it breaks below that then we might be looking at 2,500 or 2,000. However, looking at the daily chart right now it shows that the buyers are holding on.
Key Technical Levels
It might reclaim the 3,000 support but going forward to next year, the outlook is bearish for Ethereum.
Economic Data And Market Catalysts
Short Term Expectations
A lot of investors are looking out for data coming out today in the US and also on Friday. Strong economic data from the world’s most powerful economy will trigger in liquidity. The US controls the crypto space in terms of players and the participants in terms of quantity.
Impact Of US Economic Data
Positive economic data will turn the market green. However, a meltdown in the market might spell trouble for Bitcoin and it wouldn’t be surprising if it breaks below the $80,000 mark.
Market Narratives And Regulation
Missing Narratives In Crypto
With all that’s playing out, the market loves narratives. It’s been an exciting year for the crypto space, the types of ETFs. Black Rock ETFs at some point, Bitcoin hit the record high, the 126,000 resistance and bookmakers like Standard Chartered were already calling 150,000 for Bitcoin.
ETFs And Market Structure
The problem is that we have too many coins in this space and there are still a lot of dark actors, criminals, insiders, manipulation and rug pulls and that has eroded the confidence over time.
Need For Regulation And Accountability
For the space to get the integrity and liquidity, the regulation should be holistic. We need to have fewer coins. We also need to have channels where people can be held accountable because a lot of people including Nigerians have lost their money to many suspicious schemes. If you look at the space, bitcoin has done exceptionally well in the last decade. It’s still the best performing asset over time. If you had less than 20,000 naira in 2012 in bitcoin you’re talking of a billionaire right now.
Long Term Perspective And Closing
Historical Performance And Altcoins
It’s bad to look at the short-term pullback and discount yourself. However, the altcoins market needs a lot of regulation. There isn’t a lot of oversight. That market has affected the optimism in the space right now. There are over 4 million coins in this market.
Final Thoughts And Show Close
From the sentiment we see right now in this final full trading week of 2025, it’s a risk off sentiment.
Market Sentiment Summary
The market continues to face pressure as investors navigate uncertainty and prepare for upcoming economic data releases.
