Global encryption The market faced slight pressure on November 3, as major cryptocurrencies such as Bitcoin and Ethereum recorded slight declines. Much of this slowdown is related to the recent decline Artificial intelligence based codeswhich began to affect overall market sentiment. As investor focus shifts from hype-driven AI assets to more stable options, the broader digital asset ecosystem is responding with a cautious move.
Bitcoin declines as market slows
Bitcoin (BTC), the largest cryptocurrency by market capitalization, fell below key resistance levels after facing profit-taking from traders. As of the latest update, Bitcoin is trading slightly lower, showing a decline from the previous week’s high. Market analysts believe that the decline is not a major correction, but a natural reaction of the market after strong gains in October.
Bitcoin still has a strong position as a Store of value In turbulent economic times. Many institutional investors continue to accumulate currencies, treating them as a hedge against inflation and weak fiat currencies. Reports from platforms such as CoinMarketCap They show that overall liquidity remains stable, even with mild fluctuations.
The price of Ethereum also fell, but demand on the network remained strong
Ethereum (ETH), the second largest cryptocurrency asset, also saw a slight decline in price. However, its activity on the series remains intact, especially with the growing interest in it Decentralized Finance (DeFi) And layer 2 measurement networks.
Developers continue to build on Ethereum, thanks to its smart contract infrastructure and upcoming upgrades. according to Ethereum.orgHowever, the network remains on track to enhance scalability under the long-term roadmap, giving confidence to investors in the long term.
Artificial intelligence codes drive market selling
One of the biggest pressures in the cryptocurrency market comes today Symbols related to artificial intelligence like Fetch.ai (fit), SingularityNET (AGEX), and Ocean Protocol (circumference). After a period of hype-driven rallies linked to the global boom in AI and tech innovation stocks, these tokens have begun to decline.
While AI is still a strong narrative in the traditional stock market, especially AI stocks like Nvidia and Microsoft, cryptocurrency issuances of AI projects are still considered highly speculative. Many traders who entered during peak periods are now exiting their positions, causing downward pressure.
Dedicated platforms for Stock research Notice similar patterns in traditional markets: hype cycles often lead to sharp spikes followed by eventual corrections. The same pattern is now visible in AI-driven crypto projects.
Why does morale weaken?
There are several factors that explain the current decline in… encryption Feelings:
- Profit reservation: Investors who saw quick profits in AI tokens are making gains.
- Uncertain macroeconomic outlook: Concerns about interest rates and inflation continue to weigh on risky assets.
- Shifting to basics: Traders are moving from tokens to established projects such as Bitcoin and Ethereum.
- Regulatory noise: Discussions about cryptocurrency regulation in the US and EU continue to raise hesitation.
Despite this, the broader market cap of digital assets remains above $1.2 trillion, showing strength compared to last year’s bearish phase.
Institutional interest continues to grow
Even as prices decline, institutional investors are showing increasing confidence in blockchain assets. Companies like Black Rock and Sincerity Continue to push for approval of a Bitcoin ETF in the US, signaling increased mainstream adoption.
In the world of stocks, large funds follow similar long-term strategies when investing in AI stocks and technology stocks. The same behavior is now reflected in… encryption The market, which reinforces that long-term capital is not leaving, but merely short-term speculation.
What can we expect next in the cryptocurrency market?
Analysts expect volatility in the short term but expect a rebound as market confidence returns. Bitcoin could retest the higher levels if macroeconomic data becomes favorable. Ethereum’s performance will likely depend on network upgrades and increased demand for decentralized finance.
However, AI codes may continue to fluctuate as their adoption and utility in the real world increases. Many experts believe that only a few AI-based cryptocurrency projects will survive the next cycle.
Should investors be worried?
Not necessarily. The current decline is modest compared to previous market crashes. As global interest in blockchain technology grows and regulatory clarity improves, long-term holders still view this phase as one of consolidation.
Cryptocurrencies remain a high-risk, high-reward market. Investors who follow research-based decisions rather than hype cycles are likely to perform better, just as in stock market.
conclusion
On November 3, the cryptocurrency market experiences a temporary slowdown, mainly driven by the decline in AI-based tokens. While Bitcoin and Ethereum have seen slight declines, their long-term outlook remains stable due to strong fundamentals and continued institutional interest. As the market adjusts and speculative noise subsides, investors shift their focus back to reliable assets. Overall, this phase appears to represent a healthy consolidation rather than a major pullback.
Frequently asked questions
Both assets fell mainly due to a broader market slowdown and a sell-off in AI-related crypto tokens that dampened sentiment.
AI tokens are still speculative. Only projects with real benefit and adoption will survive in the long term. Research is essential before investing.
For long-term investors, consolidation phases often create buying opportunities. However, always evaluate risks and market conditions before investing.
Disclaimer:
The content shared by Meyka AI PTY LTD is intended only for research and information purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.
