Crypto Markets Come Under Renewed Pressure

The recent correction in cryptocurrencies has been sharp, but it cannot be explained solely by factors within the sector. According to a market analysis published by CoinShares on November 6, Bitcoin fell just over 5% during a session in which the Nasdaq declined 5.5% and semiconductor stocks dropped 12%. More than $1 billion in leveraged crypto positions was liquidated over the same period. The timing suggests the sell-off formed part of a broader retreat from risk linked to technology and artificial intelligence.

This is a sign of the crypto market’s growing integration with traditional markets. Bitcoin retains its own characteristics—including a programmed issuance schedule and a maximum supply of 21 million units—but in the short term its price can move in line with assets that are more sensitive to liquidity, interest rates and risk appetite. The next halving of the mining reward is estimated for 2028; the 2024 halving reduced the reward to 3.125 BTC per block. These mechanisms affect supply over time, but they do not shield prices from fluctuations in demand.

Flows and leverage amplify market moves

ETPs and ETFs have made exposure to digital assets more accessible and offer a useful indicator of investor positioning. Flows, however, are not a complete measure of global demand: they cover specific products and markets and do not capture all buying and selling conducted directly on crypto platforms.

Leverage can make corrections happen faster. When prices fall, forced liquidations of positions financed with borrowed money can trigger further selling. If the market reverses, the same mechanism can amplify gains. The liquidations observed in November are consistent with this dynamic, although they do not by themselves determine whether the downturn will continue.

Monetary policy remains a key driver

On October 28, the Federal Reserve held its federal funds rate within a range of 3.75%–4%, noting that economic activity was expanding at a strong pace while inflation remained elevated. Relatively high interest rates can make riskier investments less attractive and keep leveraged financing expensive.

CoinShares also reported that the October US employment data, released on November 6, was stronger than expected: 165,000 new jobs, compared with a forecast of about 65,000, while unemployment stood at 4.1%. A strong labour market, together with still-elevated inflation, could leave less room for rapid monetary easing. For cryptocurrencies, the effects are felt mainly through interest-rate expectations, real yields and available liquidity.

A broad but varied market

“Crypto” covers assets with different functions and risk profiles. Bitcoin is often treated as a scarce asset and a way to gain exposure to the sector. Ethereum supports applications and programmable contracts; other tokens depend more heavily on activity across their respective networks, liquidity and investor expectations. Stablecoins, by contrast, aim to maintain a stable value against a reference currency and play an important role in trading and transfers within the ecosystem.

The Bank for International Settlements (BIS) estimated the market capitalisation of stablecoins at around $320 billion at the end of May 2026. It also noted that their primary use remains crypto trading and that market capitalisation is concentrated mainly in dollar-pegged stablecoins. This points to a significant part of the market’s infrastructure, but does not mean stablecoins are free from reserve, redemption or regulatory risks.

Rules and custody: progress is still under way

In the United States, the SEC published a proposal in August 2026 for an offering regime tailored to certain investments linked to crypto assets. In October, it put forward another proposal on custody rules for regulated funds and investment advisers. These are proposals, not final rules; their outcome could affect how intermediaries and institutional investors operate in the sector.

Greater institutional participation broadens access to the market, but does not remove risks linked to volatility, custody, liquidity or product structure. The technology stock correction has also shown how mining companies with exposure to data centres and artificial intelligence can be affected by several factors at once.

How to read the current phase

The available data point to a market facing converging pressures: a sell-off in technology stocks, less favourable interest-rate expectations and the liquidation of leveraged positions. This picture does not, by itself, demonstrate structural deterioration in blockchain technology, nor does it make it possible to identify a price bottom with confidence. It does show that, in the current phase, crypto prices also depend on financial conditions and capital flows originating outside the sector.

To assess how the market develops in the coming weeks, it will be useful to track three factors together: macroeconomic data and Fed signals, flows into exchange-traded products, and whether prices can stabilise after the liquidations. Bitcoin’s programmed supply remains a structural feature; short-term volatility, meanwhile, continues to reflect demand, liquidity and global risk appetite.

Key sources: Federal Reserve, SEC, BIS, Bitcoin.org and CoinShares’ market analysis dated November 6, 2026. Data and assessments are current as of November 9, 2026, and do not constitute investment recommendations.