Bearish Storm Hits Crypto: Why Traders Are Pulling Back Hard

 

Crypto Market Faces Pressure From Regulatory Delays and Bearish Trends

The global cryptocurrency market entered November under renewed selling pressure, slipping nearly 0.93% in the past 24 hours and deepening a monthly decline of roughly 6%. Investor confidence remains fragile as regulatory uncertainty, negative derivatives sentiment, and a tightening macroeconomic environment weigh on digital assets.

Bitcoin (BTC) hovered near the $109,000 mark while Ethereum (ETH) struggled to hold above $3,400. Altcoins such as Solana (SOL) and XRP continued to lose momentum, with technical charts showing persistent resistance levels amid low liquidity and cautious trading volumes.

Regulatory Delays Continue to Undermine Market Sentiment

One of the major themes dragging on the crypto market is the ongoing delay of the U.S. Crypto Market Structure Bill. The bipartisan legislation, expected to clarify jurisdictional roles between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), remains stalled in the Senate despite earlier assurances of progress.

The bill, long seen as a cornerstone for establishing a stable regulatory framework for digital assets, was supposed to bring long-awaited clarity to exchanges, investors, and token issuers. However, the repeated postponements have sparked anxiety across the sector.

According to analysts, the uncertainty has discouraged institutional investors who are waiting for clear compliance pathways before expanding crypto exposure. “Every delay adds another layer of hesitation in institutional capital deployment,” said Brian Cooper, an independent financial strategist. “Investors want to understand how the U.S. will regulate custody, stablecoins, and exchange operations before committing significant funds.”

Meanwhile, negative funding rates in Bitcoin and Ethereum perpetual contracts—a sign that short sellers dominate—reflect the market’s bearish outlook. Traders appear unwilling to bet aggressively on upside momentum until a concrete legislative breakthrough occurs.

Michael Saylor’s Strategic Pause on Acquisitions

Amid the uneasy market backdrop, Michael Saylor, Executive Chairman of MicroStrategy, made headlines again with his comments during the company’s third-quarter earnings call. He confirmed that MicroStrategy will not pursue any mergers or acquisitions of other Bitcoin-holding firms “in the near term,” citing uncertainty and the long execution timelines of such deals.

“There’s just too much uncertainty,” Saylor said during the earnings discussion. “Deals that look attractive at first can become unworkable over time. Our strategy is to focus on strengthening the balance sheet, selling digital credit, and continuing to accumulate Bitcoin.”

The remarks come as corporate Bitcoin treasury consolidation has started to emerge in the market. In September, Strive merged with Semler Scientific in an all-stock deal, forming the 12th-largest Bitcoin-holding entity globally with over 11,000 BTC, placing it just behind Tesla in corporate Bitcoin rankings.

Despite that trend, Saylor emphasized that MicroStrategy’s current playbook—buy Bitcoin, hold long-term, and build shareholder value through digital asset appreciation—remains its most effective strategy. CEO Phong Le also commented that acquisitions in software or crypto-related spaces often carry hidden liabilities and complexities that outweigh potential short-term gains.

As of Q4 2025, MicroStrategy holds a staggering 640,808 BTC, valued at over $70 billion at the current market rate. This makes the company the world’s largest corporate Bitcoin holder, accounting for more than 3% of Bitcoin’s circulating supply.

U.S. Lawmakers Push Forward Despite Government Shutdown

While the market reacts to corporate caution, lawmakers in Washington are continuing their efforts to shape digital asset policy—even amid the ongoing government shutdown. According to Bloomberg reports, Republican and Democratic senators are still collaborating on a bipartisan crypto market structure bill, with hopes of passing it by the end of 2025.

Senator John Boozman, Chairman of the Senate Agriculture Committee, is reportedly working alongside Democrat leaders to finalize the bill, which builds on the earlier CLARITY Act passed by the House. The legislation, now expected to evolve into the Responsible Financial Innovation Act, aims to define clear rules for stablecoins, custodians, and digital asset exchanges.

Senator Cynthia Lummis, a long-time crypto advocate, stated that while the shutdown delayed hearings and slowed committee reviews, the bill remains “a top priority” for the next legislative session. “We need to give digital assets a legal home,” Lummis said last week. “Without clarity, innovation will continue to move offshore.”

For crypto investors, this represents a double-edged sword: the prospect of regulation could mean mainstream acceptance, but the slow pace of political progress adds months of uncertainty in a fast-moving global market.

Institutional Focus Shifts to Tokenized Real-World Assets

Even as the broader crypto market faces challenges, tokenized real-world assets (RWAs) have emerged as one of the most promising growth sectors in blockchain. A new Standard Chartered Bank report forecasts that the global RWA market could surge to $2 trillion by 2028, up from approximately $35 billion today.

RWAs refer to traditional financial instruments—such as bonds, equities, and real estate—that are digitally represented on blockchain networks. The bank’s report suggests that by 2028, around $750 billion in money market funds, $750 billion in U.S. stocks, and $500 billion in private assets and funds will be tokenized and accessible through decentralized platforms.

Geoff Kendrick, Head of Digital Asset Research at Standard Chartered, said the evolution toward on-chain assets represents “a fundamental restructuring of global finance.” He added, “Tokenization offers efficiency, transparency, and liquidity that traditional systems cannot match. Combined with stablecoin interoperability, the sector could unlock an entirely new layer of global capital markets.”

Analysts Remain Cautiously Optimistic

Despite the week’s bearish trends, analysts remain cautiously optimistic that the current correction could stabilize by mid-November. Technical indicators suggest that Bitcoin remains in a long-term bullish structure as long as prices stay above the $100,000 threshold. Meanwhile, Ethereum’s fundamentals—particularly the growth in Layer 2 networks and staking adoption—continue to provide a cushion against broader market weakness.

Altcoins, however, remain under heavy pressure. Solana (SOL), which rallied earlier this year, has lost nearly 18% in October alone amid profit-taking and decreased decentralized app activity. XRP and Cardano (ADA) also saw muted momentum, reflecting broader investor caution in the altcoin sector.

Market experts note that the convergence of macroeconomic tightening, U.S. interest rate uncertainty, and regulatory bottlenecks could keep crypto volatility elevated through Q4 2025. “Investors are looking for policy clarity, not necessarily bullish catalysts,” said Matthew Grant, Chief Economist at Digital Macro Research. “Until that arrives, the crypto market may remain in a defensive stance.”

Conclusion

The global crypto market stands at a crossroads—balancing innovation and adoption against policy delays and macroeconomic caution. While regulatory frameworks inch forward and institutional players explore blockchain-based assets, short-term sentiment remains fragile.

Still, the steady rise of tokenized real-world assets and corporate giants like MicroStrategy doubling down on Bitcoin holdings demonstrate that the foundation of the digital asset revolution remains strong. The coming months will reveal whether markets can shake off uncertainty and transition into a more mature, regulated era for cryptocurrencies.

Source: Here

Writer @Ellena

Erlin is an experienced crypto writer who loves to explore the intersection of blockchain technology and financial markets. She regularly provides insights into the latest trends and innovations in the digital currency space.

 

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