Crypto Market Sees Significant Outflows and Volatility Amid Economic Uncertainty
The Czech National Bank made history as the world’s first central bank to purchase bitcoin, while a spot XRP ETF debuted in the US, marking notable trading volume.
Bitcoin prices fell below $100,000, coinciding with an 8.35% drop in the CoinDesk 20 index over 24 hours. Major stock indices also declined, with the Dow Jones Industrial Average down 1.65% and Nasdaq down 2.29%.
Spot bitcoin ETFs experienced $869 million in outflows on Thursday alone, contributing to a total of $2.64 billion in outflows over the past three weeks. Market participants continue to adjust positions, with Wintermute reporting investor strategies that include positioning for long-dated BTC volatility in the range of 80,000–120,000 and selective short-term call selling. Ether options similarly indicate downside hedging towards year-end and active call selling around the 3,500 to 4,000 price range.
Liquidations in the market surpassed $1.11 billion within a 24-hour period, driven by diminishing expectations of rate cuts and growing concerns about artificial intelligence.
Market odds for a December rate cut remain mixed, with the CME FedWatch tool showing a near toss-up and Polymarket pricing a 52% chance of a 25 basis point cut, down from 90% the previous month.
The White House indicated that key economic data, including October inflation figures, may face delays due to the conclusion of the government shutdown.
In the decentralized finance sector, Convex Finance is conducting a vote to discontinue OFT token support for assets such as frxETH on networks including Polygon zkEVM and Blast, with voting concluding on November 14.
Upcoming token unlocks and listings include WalletConnect Token (WCT) with a 65.21% unlock on November 15; CONX and STRK with 2.92% and 5.34% unlocks respectively on November 15; ARB with a 1.94% unlock on November 16; and the Pieverse token scheduled for listings on Binance, MEXC, BingX, XT, among others.
