Cryptocurrency markets’ rebound on Monday quickly reversed on Tuesday along with Bitcoin It fell to $103,000.
After briefly topping $107,000 overnight, the largest cryptocurrency fell to $102,900 during US business hours, down 2.5% over the past 24 hours. The decline erased gains fueled by President Donald Trump’s “tariff split” plan and growing optimism about an approaching US government shutdown.
Ethereum Ether Large-cap altcoins like Solana’s SOL fell 2.3% to below $3,500. , and It fell by 4%-5%, representing a broad decline across digital assets.
The selling extended to cryptocurrency-related stocks, especially among bitcoin miners who play an infrastructure role in the artificial intelligence (AI) boom. CleanSpark (CLSK) is down 8%, Hut 8 (HUT) is down nearly 9%, and Core Scientific (CORZ) is down 11.5% in the early session. TeraWulf (WULF) and Bitdeer (BTDR) also posted double-digit declines.
The sector-wide weakness stemmed from a list of companies reporting weaker-than-expected earnings and growth forecasts in a sign that the red-hot AI infrastructure trade, driven by lofty expectations for demand for increased computing power, is set to see a correction.
Cloud computing provider CoreWeave reduced Its forecast for the next quarter, due to delays in data center development, sent its stock down 15% to its weakest level since early September. Terawolf I mentioned Weak profits and BitDeer to publish Deeper than expected losses and delays in next-generation ASIC chips.
Among the negative headlines was Japanese investment bank SoftBank sale Its entire $5.8 billion stake in chipmaker and AI leader Nvidia (NVDA), sent shares of the world’s most valuable company down 3.5%. The Nasdaq index of technology stocks fell by 0.7%, while the Standard & Poor’s 500 index lost 0.3%.
Also this morning, ADP data reported that US private sector employers cut an average of 11,250 jobs per week in the four weeks ending October 25, indicating a deteriorating labor market.
The CME FedWatch tool now estimates a roughly 67% chance of a rate cut at the Fed’s December meeting, while Polymarket sees it slightly higher at 72%.
Bitcoin is still limited in scope
With Tuesday’s pullback, Bitcoin has now filled the so-called CME gap that formed over the weekend. A gap occurs when bitcoin futures contracts traded on the CME, a favorite market among US institutions, open higher or lower than where they closed the previous session.
CoinDesk Senior Analyst James Van Straaten noted that BTC’s reconsideration of these price gaps is often seen in market behavior, although not all gaps are necessarily filled.
While overall sentiment in cryptocurrency markets has improved in the past few days with Bitcoin and Ethereum rebounding from their lows, traders are using the rebound as an opportunity to take profits across the board, Jasper De Meer, a strategist on the OTC desk at trading firm Wintermute, wrote in a note on Tuesday.
“When it comes to alternatives, the issue is still increased profit-taking power, leading to short-term outperformance,” he said. “There is a consensus that the larger companies need to rise first.”
Bitcoin still maintains its trading range between $100,000 and $110,000, and is still consolidating, Paul Howard, senior director at trading firm Wincent, told CoinDesk.
“If we see an improvement in the US macroeconomy as the lockdown ends, the $100,000 threshold should remain intact for $BTC,” he added.
Update (November 11, 16:50 UTC): Adds analyst comment. Price updates.
