On November 13, overnight gains in cryptocurrencies quickly evaporated after the U.S. market opened, with Bitcoin (BTC) falling below the $102,000 mark on Wednesday, erasing earlier gains that had pushed it above $105,000 within hours. FPG International noted that this short-term pullback reflects high volatility during traditional trading hours and cautious investor sentiment.
Not only Bitcoin but other major crypto assets also experienced similar declines. Ethereum (ETH) briefly dropped below $3,400, shedding nearly 5%, while leading altcoins such as Solana (SOL) and Ripple (XRP) faced broad pressure, with losses ranging in the single-digit percentages. FPG International attributed the recent price movements in digital assets to multiple factors, including shifts in market liquidity and the impact of U.S. stock market openings, which directly reflect broader market sentiment fluctuations.
Meanwhile, U.S. crypto-related stocks also came under pressure. Stablecoin issuer Circle (CRCL) fell 9.5% after releasing its Q3 earnings report, while mining firms focused on data center expansion—such as Bitfarms (BITF), Bitdeer (BTDR), Cipher Mining (CIFR), Hive Digital (HIVE), Hut 8 (HUT), and IREN—saw declines generally between 5% and 10%. FPG International stated that this signals investor caution toward crypto assets and related companies amid macroeconomic uncertainty.
Weak Bitcoin demand from U.S. investors further limited price upside. The Coinbase Premium Index—a measure of U.S. investor demand—has remained negative since late October, marking the longest stretch of negative readings since Bitcoin’s major correction in April. FPG International noted that the prolonged negative premium reflects subdued U.S. demand, while overseas exchanges continue to see some support from active retail interest. However, the broader market lacks strong upward momentum.
Additionally, uncertainty around Federal Reserve policy has amplified market volatility. While markets had widely anticipated another rate cut in December, recent reports suggest policymakers are divided over persistent inflation risks and softening labor market conditions. Delays in key economic data releases due to a government shutdown have further clouded policy outlooks. FPG International believes this divergence and unpredictability have directly impacted investor sentiment, contributing to over $1.8 billion in net outflows from U.S.-listed Bitcoin ETFs since October, further constraining Bitcoin’s upward potential.
In summary, FPG International views the recent pullback in Bitcoin and major altcoins as a rational response to multiple factors, including U.S. market volatility, weak domestic demand, and Fed policy uncertainty. In the absence of clear bullish catalysts, digital assets may remain in a consolidation phase in the near term. FPG International advises investors to monitor market sentiment and policy developments while maintaining prudent position management to navigate potential volatility.