Why everything is falling apart – how we got here

Rough start to the week for the crypto market. And while many are asking “What’s going on…?”, it looks like a combination of several key factors pulled the trigger.

There may also be deeper, still-hidden reasons that aren’t visible on the surface. For now, though, the main culprit can be summed up in three letters: FUD — Fear, Uncertainty, Doubt.

If we line up the events in order — first came uncertainty, then doubt, and finally — fear.

1️⃣ Uncertainty: The Federal Reserve

On October 29, Fed Chair Jerome Powell delivered a series of “hawkish” remarks:

“A further reduction in the policy rate at the December meeting is not a foregone conclusion, far from it.”

In plain English: the Fed may not cut rates in December.

When rates stay high, the dollar strengthens and investors have less incentive to seek returns in risk assets like crypto.

And sure enough — right after that statement, the U.S. dollar moved up and Bitcoin moved down.

2️⃣ Doubt: Outflows from ETFs

Those comments sparked doubt among institutional investors.
The result? Broad portfolio “de-risking.”

In just a few days (since October 29), more than $1.33 billion flowed out of Bitcoin ETFs.

Ethereum ETFs didn’t fare better — outflows were around $500 million.

This is a signal that “smart money” is temporarily stepping back from the market.

3️⃣ Fear: The Balancer hack

The last blow came from DeFi.
On November 4, the Balancer protocol suffered a sophisticated exploit, draining about $128 million.

The paradox?
Balancer is one of the most-audited DeFi projects, reviewed by top cybersecurity firms.

And at a time when traditional finance is taking its first steps on-chain, events like this can cool enthusiasm.

The end result?

Total crypto market capitalization fell by nearly 10% within a few days after the Fed press conference.

But don’t rush to panic

This isn’t the end of the story — just a short wave in a larger cycle.
The market has dozens of other “levers” acting at the same time, and if you want to understand which ones will drive the next leg up, it’s time to think strategically.

💡 In moments like this, market weakness is also an opportunity — for those who understand what’s happening behind the scenes.

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