Bitcoin & XRP Fall in Early November: What Triggered the Dip and What Investors Should Know

The cryptocurrency market experienced fresh volatility in the first week of November as Bitcoin (BTC) and XRP saw noticeable price drops. After weeks of consolidation and confusing macroeconomic signals, the market reacted sharply — with Bitcoin falling 2–3% and XRP facing a deeper 5% decline in a single session.

✔ What Caused Bitcoin to Drop in Early November?

Bitcoin has been rising steadily since Q3 2025, yet selling pressure returned in early November. Several major factors contributed to this correction:

1. Uncertainty About the US Federal Reserve’s Interest Rate Path

• Investors expected early rate cuts, but conflicting economic data signaled delays.
• High interest rates reduce global liquidity.
• Risk assets like cryptocurrency typically weaken when monetary policy tightens.

2. Institutional Profit Booking & Weak ETF Inflows

• Bitcoin ETFs were a key driver of BTC’s previous rally.
• Early November saw ETF inflows slowdown.
• Some ETFs even reported small withdrawals.
• Institutions booked profits after the strong October rally.

3. Strong Technical Resistance Between $110,000 and $115,000

Bitcoin repeatedly failed to break above the crucial $115,000 resistance zone, leading to:

• Short-term bearish sentiment
• Opening of new short positions
• Correction back to lower support levels

4. Whales Triggered a Long Squeeze

• Large BTC holders placed heavy sell orders.
• This initiated stop-loss hits and liquidation of leveraged long positions.
• Resulted in a fast downward chain-reaction move.

✔ Why Did XRP Drop More Sharply Than Bitcoin?

XRP suffered a steeper fall of 4–5% compared to Bitcoin’s 2–3%. Several XRP-specific factors drove this stronger decline:

1. Ripple vs SEC Case Pressure Continues

Ongoing legal uncertainty still affects XRP sentiment.

• Any delay or unclear update triggers fear.
• Investors shift to safer assets when regulatory clarity weakens.

2. XRP Faced Heavy Resistance at $0.80–$0.85

XRP has been range-bound for months. Each breakout attempt above $0.85 meets strong selling pressure.

• Early November saw fresh rejection at resistance.
• Sellers stepped in aggressively.
• A rapid 4–5% decline followed.

3. Bitcoin’s Drop Amplifies XRP Volatility

• XRP usually reacts 2× stronger than BTC during corrections.
• Lower market depth makes XRP more sensitive to sudden sell orders.

✔ Additional Market-Wide Factors Behind November’s Decline

1. Weakness in Global Equity Markets

• Rising bond yields
• Inflation worries
• Earnings volatility in tech stocks

2. Rising Inflation Concerns

• Late-October reports showed inflation above expectations.
• Consumer demand weakening in major economies.
• Concerns of a global slowdown intensified.

3. Traders Moving to Stablecoins

• Higher stablecoin dominance (USDT/USDC).
• Traders expected further pullbacks.
• High-leverage positions were cut down.

✔ Investor Sentiment: Fear Rising, But Under Control

The Crypto Fear & Greed Index shifted from “Greed” to “Neutral” after the early-November dip. Traders are cautious — but not panicking.

Positive Market Signals

• No large whale inflows to exchanges (bullish)
• Stablecoin supply rising (fuel for the next rally)
• Long-term investors continue accumulating Bitcoin