Bitcoin has entered its fourth consecutive day of declines, retreating from the 115K level seen earlier this week and currently trading near 108K, testing a key support zone. The selloff extends across the crypto market, with Ethereum down nearly 4% and XRP losing about 5% in the past 24 hours.
The total crypto market cap has fallen 3.4% in 24 hours to $3.68 trillion, marking a weekly low. Meanwhile, the Fear and Greed Index slipped back into Fear territory at 34, down sharply from 51 the previous day — reflecting the growing uncertainty among traders.
This sharp move triggered a $1.02 billion liquidation event in leveraged positions, with $851 million in long positions wiped out as traders were caught on the wrong side of the move.
Why is Bitcoin Falling?
The decline comes despite the Federal Reserve’s latest 25 bps rate cut, bringing benchmark rates to 3.75%–4%, the lowest since mid-2022. However, comments from Fed Chair Jerome Powell unsettled markets. Powell signaled that a December rate cut is not guaranteed, highlighting ongoing inflation pressures and a fragile economic outlook — catching investors off guard.
Markets had previously priced in a 90% chance of another rate cut in December, but that confidence has dropped to 70%, leading to broad weakness in risk assets including Bitcoin.
While this has led to short-term selling pressure, the Fed’s plan to end Quantitative Tightening (QT) from December 1st could provide medium-term support for crypto assets. Historically, November has also been a seasonally bullish month for Bitcoin.
Institutional Demand Weakens and Long-Term Holders Take Profits
Institutional activity also cooled off sharply this week. Bitcoin ETFs recorded $470 million in net outflows, the largest in two weeks, after four days of steady inflows totaling $350 million. That brings the week’s net outflow to $118 million — suggesting institutions are taking profits or moving to the sidelines amid uncertainty.
At the same time, long-term holders (LTHs) — wallets holding BTC for more than six months — sold approximately 325,000 BTC in October, valued around $35 billion at an average price of 110K. This represents the biggest monthly decline since July, signaling potential rotation or profit-taking among early investors.
If these selling trends persist, Bitcoin’s recovery could stall. However, a rebound in institutional flows and renewed LTH accumulation, paired with a looser monetary policy outlook, could help BTC regain upward momentum.
What It Means for Grid Traders
Periods like this — when the market oscillates sharply between key support and resistance levels — are prime conditions for grid trading strategies. Instead of trying to time exact market tops and bottoms, grid trading bots can automatically buy low and sell high within predefined price intervals, capturing profits from short-term volatility.
Whether Bitcoin consolidates around 108K or rebounds toward 115K, a properly optimized grid trading setup can turn this choppy market into a steady stream of automated gains.
Start your grid strategy today with Mycryptaro and let volatility work for you, not against you.
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