Bitcoin Decline Serves as Cautionary Signal for Stock Market: Crypto Daybook Americas

By Omkar Godbole (All times ET unless otherwise specified) The cryptocurrency market continues to face downward pressure, following a decline in October. Over the past 24 hours, Bitcoin has dropped 3% to $107,500, while other major cryptocurrencies such as ETH, XRP, BNB, and SOL have experienced even greater losses, with the CoinDesk 20 Index falling over 4%. Among the top 100 cryptocurrencies, only ICP, ASTER, and HASH have seen gains, with ASTER receiving a boost from Binance co-founder Changpeng "CZ" Zhao's disclosure of his investment in the token. It is worth noting that Bitcoin has recently decoupled from the tech-heavy Nasdaq index, with potential upside limited by consistent profit-taking from long-term holders. This decoupling could serve as an early warning signal for the stock market. In 2021, Bitcoin reached its peak in November, followed by the stock market about a month later. Coincidentally, options related to the so-called "Magnificent Seven" tech giants are already showing signs of overexuberance, a common indicator of market peaks. Despite this, bulls remain optimistic as Bitcoin prices remain above the $100,000 mark. "Historical data indicate that November is typically the strongest month for Bitcoin performance, with average returns above 40% over the past decade," said Emir Ebrahim of ZeroCap. "With macro uncertainty easing and risk sentiment improving, the outlook remains favorable for a continuation of the longer-term uptrend into the year-end." However, chart analysts have a different perspective. Veteran technical analyst Peter Brandt has opened a short trade in Bitcoin futures, citing a "megaphone" pattern on the Bitcoin chart that usually signals a price drop. Meanwhile, the pace of hacks continues to raise concerns about the security of blockchain infrastructure and the lack of institutional impact beyond pricing. Just today, Balancer was hacked for millions of dollars. In regulatory news, the Financial Times reported that the European Commission is planning to expand central oversight over key financial infrastructures, including stock exchanges, cryptocurrency exchanges, and clearing houses, to reduce market fragmentation and boost competitiveness. On the traditional markets side, the yield on the US 10-year Treasury note traded near three-week highs as traders await economic data releases this week, including ADP employment, ISM PMIs, and the Michigan sentiment index. Stay alert! Key Events to Watch For a more comprehensive list of events this week, see CoinDesk's "Crypto Week Ahead". Token Events For a more comprehensive list of events this week, see CoinDesk's "Crypto Week Ahead". Conferences For a more comprehensive list of events this week, see CoinDesk's "Crypto Week Ahead". Token Talk By Oliver Knight Derivatives Positioning Market Movements Bitcoin Statistics Technical Analysis Crypto Equities Crypto Treasury Companies ETF Flows Spot BTC ETFs Spot ETH ETFs Source: Farside Investors While You Were Sleeping