November opens with more crypto losses

Wave of selling washes over crypto assets

It has been a grim start to the new month for the crypto space. The late October rebound feels like a very distant memory as bitcoin, ether and others retest recent lows. The move lower seems to tilt the narrative firmly in the direction of a bigger correction, given the regularity of the failed rallies since September. Powell’s decision to pour cold water on a December rate hike rattled risk assets generally, but equities can always turn to the strength of US earnings season to provide comfort. Crypto assets have no such safety blanket, and instead it seems we need a real ‘washout’ in sentiment to get a durable low.

In the news

Hong Kong is set to end its isolated crypto trading system by allowing licensed exchanges to connect with global order books, bringing digital asset regulation closer to traditional financial market standards. The move forms part of the city's broader ‘LEAP’ framework and could make it easier for major platforms like Binance and Coinbase to enter the market via brokerage licences. However, trading volumes still lag well behind the US, where regulatory conditions are generally viewed as more supportive, leaving questions over whether Hong Kong can truly establish itself as a leading digital asset hub.

What we’re watching

While earnings season continues apace on Wall Street, the ongoing government shutdown has no end in sight, putting major US economic releases in doubt, most notably the payrolls release scheduled for Friday. This dearth of data means that the crypto space will struggle to find the firm foundations for a recovery, and leaves the initiative with the sellers for the time being.