It’s a tough stretch even for seasoned crypto investors. After months of bullish forecasts over the summer, the market is now facing a harsh reality. Following a weak October, another wave of correction has hit the crypto sector.
At the time of writing, Bitcoin trades at $101,200, down 3.1% in 24 hours and 10.6% lower over the past week, briefly dipping below the $100,000 threshold on Tuesday evening.
Ethereum has been hit even harder — down 5.5% daily and 18% weekly, now around $3,290, despite institutional buyers like BitMine continuing multimillion-dollar ETH acquisitions.
One major drag on the market is the slowing pace of monetary easing by the U.S. Federal Reserve. The probability of a second rate cut in December has dropped to 15%, after Fed Chair Jerome Powell emphasized caution at the last meeting — a stance that weighed heavily on risk assets like Bitcoin.
Meanwhile, on-chain data indicates that long-term holders and large whales used the recent rally to take profits. According to CryptoQuant analyst Maartun, roughly 405,000 BTC, worth nearly $41 billion, have been sold by long-term holders over the past 30 days.
At the same time, spot ETFs have failed to provide support — instead, they have intensified the sell-off. Over the last five trading days, Bitcoin ETFs saw $1.9 billion in outflows, while Ethereum ETFs lost $719 million.
Still, crypto history shows that panic is the worst investment advisor. Deep corrections often open strong buying opportunities. Investors who bought BTC during the spring crash to $78,500 are now sitting on nearly 30% gains.
The Fear & Greed Index has dropped to 23, signaling extreme fear and potentially marking a local bottom. Similar sentiment was last seen in April 2025 and August 2024, both times rewarding patient and contrarian investors.