As the final stretch of the year unfolds, crypto investors are grappling with a rare scenario: the two months that historically ignite bullish momentum instead turned into a drag on market sentiment.
Key Takeaways
- Binance Research says October erased 6.1% of the crypto market’s value.
- Investor caution remains high, but November may see stabilizing sentiment.
- Bitcoin’s dominance rose to 59.4% while ETH slipped to 12.6%.
- BNB was the only major altcoin to rise last month, up 6.2%.
- SOL, XRP, ADA, DOGE and LINK all recorded double-digit declines.
Bitcoin and major altcoins stumbled through October and entered November with investors unusually defensive.
Binance Research has now taken a closer look at this turbulence — and while the data paints a picture of stress, analysts say the market may finally be attempting to stabilize.
October’s Setback: Not Just a Price Drop, but a Confidence Shock
Binance’s latest report shows that global crypto asset valuations contracted by 6.1% during October, a month that is typically associated with strong gains for Bitcoin.
The downturn, however, was less about new bearish catalysts and more about lingering caution from last year’s massive $19 billion liquidation event, which still shapes investor psychology.
The report notes that traders spent most of October in “risk-off” mode, waiting for macro clarity. Yet expectations that the U.S. Federal Reserve could soon conclude its quantitative tightening cycle may help improve sentiment in the weeks ahead.
Bitcoin Regains Market Leadership Even as Prices Fall
One of the more surprising findings is that Bitcoin strengthened its dominance during this downturn. Its market share climbed to 59.4%, the highest level in months, reflecting a flight to perceived safety as altcoins faltered.
When volatility increases, capital typically rotates back toward BTC — a pattern that repeated itself throughout October.
Ethereum, meanwhile, was unable to defend its earlier market share. Despite institutional treasuries now holding more than 5% of the entire ETH supply, ETH’s dominance slipped to 12.6%.
The Lone Standout: BNB Defies the Trend
BNB was the month’s clear outlier.
Against a backdrop of widespread losses, BNB delivered a 6.2% gain, driven primarily by steady growth across the Binance ecosystem and increased application activity.
This divergence made BNB the only major altcoin to post positive returns for the month.
Altcoins Face Heavy Pressure as Selling Intensifies
Most large-cap tokens saw deep red candles throughout October:
- Solana (SOL) fell 12.7%, even as ETF-related developments emerged.
- XRP slid 13.9%, weighed down by U.S. political gridlock and regulatory delays.
- Dogecoin (DOGE) and Chainlink (LINK) each lost around 21%, making them some of the weakest performers.
- Cardano (ADA) posted one of the steepest drops at 24%, fueled by aggressive whale distribution and postponed ETF timelines.
The declines highlight how fragile market confidence became after October’s downturn — and how investors avoided speculative assets while macro uncertainty persisted.
A Slow, Uneven Turn Toward Recovery
Despite the damage, Binance Research argues that early November data shows the first hints of stabilization.
With traders beginning to price in a more supportive monetary environment, the report concludes that November holds a better probability of recovery than October — though the rebound is expected to be gradual, not explosive.
The information provided in this article is for educational purposes only and does not constitute financial, investment, or trading advice. Coindoo.com does not endorse or recommend any specific investment strategy or cryptocurrency. Always conduct your own research and consult with a licensed financial advisor before making any investment decisions.
Source: https://coindoo.com/red-october-hits-crypto-but-analysts-expect-november-stabilization/