The week opened on a cautionary note as the broader crypto market entered a sharp correction phase. On November 5, the total market capitalization slipped, and Bitcoin briefly broke below the psychological $100,000 level, triggering a wave of liquidations across leveraged positions. The pullback was largely driven by risk-off positioning, persistent macro uncertainty, and tightening global liquidity. In the days that followed, modest recovery attempts emerged as investors tested key support zones, though sentiment remained fragile. A recent global hedge fund survey revealed that 55% of funds now hold crypto exposure, a record high that reinforces the deepening institutional footprint amid volatility. However, diversification by some crypto-treasury firms into less-liquid Altcoins raised questions about future volatility and liquidity risk.
By November 12, the market showed signs of stress. According to SoSoValue, Bitcoin slipped 2.6% to below $104,000, while Ethereum retreated 3.7%, trading under $3,500. The AI-token sector led losses, tumbling 6.3%, with DeAgentAI (AIA) plunging nearly 27% after its rally, and FET and Fartcoin each dropping more than 11%. Other categories followed suit; Layer 1 tokens fell 4.8%, Layer 2s dropped 5.4%, and Meme coins lost 4.9%, though a few resilient names such as Nano (XNO) and SOON managed double-digit gains.
In contrast to market softness, institutional and regulatory developments highlighted a deepening structural evolution. JPMorgan Chase advanced its blockchain payment initiative with the rollout of JPM Coin on Coinbase’s Base network, enabling real-time tokenized USD transfers and expanding its pilot with Mastercard and Coinbase. The bank also registered JPME, a forthcoming euro-denominated token, signaling a broadening of blockchain-based liquidity management. Meanwhile, Bitcoin spot ETFs saw strong inflows of $524 million, led by BlackRock’s IBIT ($224M) and Fidelity’s FBTC ($166M), pushing cumulative exchange-traded-funds (ETF) inflows to $60.5 billion and total asset under management (AUM) to $137.8 billion, roughly 6.7% of Bitcoin’s market cap. Ethereum ETFs, however, saw $107 million in outflows, reflecting softer sentiment toward Ether-based products.
Regulatory discourse also gained traction. Andreessen Horowitz’s a16z Crypto submitted its first-round feedback to the U.S. Treasury on the GENIUS Act, advocating for privacy-preserving decentralized digital IDs and the use of zero-knowledge proofs (ZKPs) to modernize anti-money laundering and know your customer (AML/KYC) compliance. The firm urged regulators to differentiate between decentralized and payment stablecoins to avoid stifling innovation. Simultaneously, Bitwise CIO Matt Hougan highlighted that markets may be underrating the probability of U.S. crypto legislation passing soon, citing bipartisan backing for the CLARITY Act and unprecedented levels of crypto lobbying.
On the corporate front, Coinbase reportedly ended its acquisition talks with London-based BVNK, a stablecoin infrastructure firm previously valued at $2 billion, after the due diligence phase.
With expectations that the U.S. government shutdown will conclude soon, markets are likely to pivot around upcoming rate decisions, dollar strength, and institutional allocation flows. The November 5–12 window captured the dual nature of today’s crypto landscape, which was once fragile to macro shocks, yet gradually reinforced by structural and institutional anchors. The market remains in a consolidation phase, neither in full retreat nor in breakout mode. For investors, caution with flexibility remains key while maintaining prudent leverage, prioritizing liquidity, and differentiating between core large-cap exposure and higher-beta Altcoins to navigate the evolving cycle.
By: Sandra A. Aghaizu
The market drifts between calm and storm,
Waiting for the wind to turn.
With the U.S. reopening its doors,
Rates, the dollar, and big players steer the tide.
Crypto stands fragile yet forging strength,
Not falling, not soaring, just breathing.
Now’s a time for light sails and steady hands:
Keep cash close, choose wisely,
And let patience be your compass.
