The crypto market entered 2025 on an uncertain note, as major altcoins such as Ether (ETH), Solana (SOL) and XRP all saw significant losses of nearly 8% due to risk-off sentiment. Meanwhile, Bitcoin (BTC) showed early signs of resilience that may indicate its readiness for an optimistic November rebound.
Altcoin Disaster: Huge Losses
CoinDesk recently provided an update in which Solana led with a one-day drop of 10% — increasing its seven-day drop to over 20% — as the wider crypto market shed almost US$100 billion in capitalisation. Ethereum fell approximately 6% during this window while XRP breached key technical levels with 6-8% losses. Sources include The Economic Times, CoinDesk and FXStreet for their findings.
analysts caution XRP may soon reach a bearish “death cross” technical pattern where its 50-day moving average crosses below its 200-day average, often seen as an omen of further downside risk.
CoinDesk
The causes for the decline may include both macro-level caution and internal crypto market structural weakness. While the Federal Reserve reduced interest rates by 25 basis points last week as planned, Chairman Jerome Powell’s cautionary tone — including his suggestion of skipping December cuts altogether — scared away risk assets and caused them to drop sharply. (CoinDesk).
Bitcoin: Slumping yet holding steady
Bitcoin prices also experienced a sharp drop, falling below US$105,000 earlier this week to mark its worst October since 2007. A report published by CoinDesk indicated this decline was caused by falling cryptocurrency trading volumes as well as speculation by traders on various cryptocurrency trading exchanges, according to CoinDesk research.
Comparative to altcoins, bitcoin’s decline has been more moderate; key indicators suggest an upside potential. On-chain data indicates large holders accumulating and stabilising near major moving averages.
Analyst sentiment is increasingly leaning toward November as a pivotal month for Bitcoin. Previous patterns demonstrate its historical strength, while current structural setups suggest potential breakouts to US$113K-US$118K levels. Blockchainreporter
One key reason behind the divergence lies with why this mattered a moment earlier in time.
Bitcoin’s sharply differing performances with those of major altcoins highlight an emerging dynamic in the crypto market:
Rotation to perceived safe-play assets: Bitcoin seems to be benefitting as the de facto “safer crypto asset”, while high-beta altcoins face greater risks from market sentiment changes.
Technical Reset for Altcoins: Altcoins were overheated, and their rapid decline may reflect profit-taking, leverage unwind, or sentiment reversal.
Bitcoin’s structural tailwinds: With key resistances nearby and supportive momentum, Bitcoin may have higher odds of recovering if market risk appetite improves.
What to Watch this November
Crypto traders and investors will focus their attention on several key indicators.
Bitcoin’s Regaining of US$108K-US$110K: Rising above this base would strengthen bullish structure and open upside potential toward US$116K-US$118K. CoinDCX | Altcoin Support Levels For Ethereum, SOL and XRP respectively, whether key supports hold will determine whether correction deepens further or stabilises.
Macro indicators to watch include US nonfarm payrolls, Fed commentary, dollar strength and risk asset sentiment. Binance On-Chain and ETF Flow Data: Any increase in Bitcoin accumulation, ETF inflows or reduction of exchange outflows could indicate potential bullish signs.
While the crypto market is currently experiencing a corrective phase — with altcoins experiencing notable losses — Bitcoin may be approaching an inflection point. If major macro and on-chain conditions align, November could mark the beginning of an upswing for this particular cryptocurrency, even as other assets remain volatile. As November progresses, traders should keep event risk, technical structure and capital flows top-of-mind during trading sessions during November.
