Bitcoin plunges below $ 108,000 amid statements from US regulator

On Sunday, November 2, Bitcoin BTC $107,489.00 Mezo Wrapped BTC -2.93% Market capitalization $56.68 million VOL. 24 hours $1.66 billion dropped to $ 108,000, and Ethereum ETH $3,703.67 Bridged Ether (StarkGate) -4.03% Market capitalization $85.11 million VOL. 24 hours $1.84 billion - to $ 3,750. The crypto market is reacting to expectations of macroeconomic data in the United States and a statement by Treasury Secretary Scott Bessent about the risks of a recession due to high interest rates.

According to CoinGecko, Bitcoin lost 1.7% per day, while Ethereum lost 3.5%. Most altcoins also fell in price. Investors remain cautious ahead of the US employment report, which is expected on Friday. Expectations of changes in monetary policy affect the dynamics of cryptocurrencies.

In a commentary for CNN, Scott Bessent said that the Federal Reserve’s tight policy «may have already put parts of the economy, especially the housing market, into recession.» According to him, this could be a reason to cut rates, but at the same time, it creates risks for households with high debt burdens. After the interview, the market rose briefly, but optimism quickly faded.

Investors concluded that rate cuts in response to the economic slowdown do not guarantee a quick recovery in liquidity. Bitcoin’s dominance remained stable, indicating that the market’s risk appetite for less liquid tokens is low. Attention is focused on whether the Fed’s upcoming decisions will signal a soft landing or deeper problems.

According to Glassnode, Bitcoin failed to return above the short-term cost of ownership level of about $ 113,000. This threshold has been holding back growth for three weeks. A breakdown could trigger a further correction with potential support around $ 88,000, a level that in previous cycles corresponded to downward phases.