(MENAFN- The Rio Times) As the world awakens to November 1, 2025, the cryptocurrency market nurses a Halloween hangover, with total capitalization slipping 2% to $3.71 trillion the day before.

Bitcoin, the digital gold standard, plunged below $107,000 amid jitters from the U.S. Federal Reserve's quarter-point rate cut-a measured step praised by fiscal hawks for reining in inflationary pressures often stoked by overly generous government spending programs.

Yet, by morning, it rebounded to around $110,000, signaling resilience in a landscape where prudent policy wins favor over expansive experiments.

The story unfolds against a backdrop of economic prudence clashing with market exuberance.

Fed Chair Jerome Powell's firm warnings on persistent inflation-echoing conservative calls for disciplined monetary control-triggered $884 million in liquidations and $488 million in Bitcoin ETF outflows, including heavy hits to BlackRock's funds.

Ethereum echoed the slide, down 2.15% intraday to $3,852, while Solana bucked the trend with minor losses at $185, lifted by $70 million in fresh ETF inflows that highlight the appeal of innovative, lightly regulated assets.

Standout performers painted a vivid picture: AI-driven tokens like TAO soared 20%, rewarding tech-savvy investors, while speculative memes such as COAI cratered 18%, a cautionary tale of volatility amplified by social frenzy.

Litecoin climbed 4.19% to $98, underscoring the strength of time-tested coins in uncertain times.


Behind the Crypto Dip: Fed Caution and Brazil's Emerging Blockchain Frontier
Altcoins displayed volatility, with standout gains in LAB (up 61% to $0.24 amid speculative momentum) and VELVET (up 16% to $0.23 on ecosystem developments).

Conversely, COAI plunged 32% to $1.84 due to sector rotations, CLANKER fell 20% to $106 after a prior surge, and HYPE dropped 11% to $44 amid declining fees.

Technical analysis of Bitcoin charts reveals a bearish short-term bias. The daily timeframe shows consolidation after failing to break above key moving averages, with RSI indicating weakening momentum.

The four-hour chart highlights oversold conditions, suggesting possible capitulation but downside risk below $108,300. October 2025 has proven challenging, marking Bitcoin's worst monthly return in over a decade.

Behind this volatility lies a deeper narrative: the Fed's pause on further cuts underscores a shift toward stability, countering progressive pushes for stimulus that could erode value.

For expats eyeing Brazil-where crypto adoption surges amid deregulation debates-this dip reveals opportunities.

With Bitcoin dominance at 60% and altcoins like XRP hinting at $5 targets via technical patterns, the market eyes a 'Moonvember' rally.

Brazil's growing blockchain hubs, free from heavy-handed socialist policies, position it as a haven for global investors seeking unfettered innovation.

As charts show consolidation above $108,000 support, the lesson is clear: in crypto's wild ride, conservative fiscal anchors may just steer the ship to calmer waters.

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