Crypto Morning News: Bitcoin Drops to 106K as Markets Split Between AI Hopes and Fed Hesitation

Key takeaways

U.S. markets were mixed as Amazon’s $38 billion deal with OpenAI and strong merger activity lifted tech stocks, while a stronger dollar limited gains.
The Supreme Court’s tariff case and the ongoing government shutdown kept investors cautious about trade and policy direction.
Federal Reserve officials gave mixed messages on December rate cuts, and weak factory data added to the uncertainty.
Bitcoin dropped to around $106,000, while gold stayed near record highs and oil prices were little changed after OPEC+ confirmed a small output rise.

Crypto Morning News: Geopolitics & Market Sentiment

On November 4, 2025, markets showed a mixed tone as a wave of corporate deals and partnership lifted Wall Street’s technology shares, while uncertainty over U.S. growth and interest rates tempered optimism amid a lingering government shutdown.

On the diplomatic front, Washington and Beijing agreed to take steps toward easing trade tensions following weekend talks between President Donald Trump and Chinese President Xi Jinping.

Meanwhile, the U.S. Supreme Court is set to hear arguments this week on the legality of Trump’s global tariffs, a case that could reshape trade strategy heading into 2026. Officials said that even if the court limits one legal authority, other frameworks would still allow many of the duties to remain, sustaining uncertainty across global supply chains.

On the economic front, U.S. manufacturing kept shrinking under the weight of tariffs, while the ongoing government shutdown delayed official data and forced investors to depend on private reports.

At the same time, Federal Reserve policymakers presented different views on whether to deliver another rate cut in December, with some warning that tight policy risks hurting employment, while others urged restraint given persistent inflation. The probability of a December cut fell toward 65% from 90% the previous week.

Meanwhile, Amazon’s $38 billion cloud partnership with OpenAI drove much of the upside in the Nasdaq, helping offset weakness in industrials and healthcare. Yet, beneath the enthusiasm, investors remained wary as U.S. factory data signaled continued contraction and Treasury yields steepened slightly at the long end.

In Europe, London stocks edged lower as investors awaited the Bank of England’s rate decision, while an unexpected drop in Swiss inflation supported views that the central bank will hold policy steady.

Oil prices were steady as OPEC+ confirmed a small supply increase for December but signaled a pause in early 2026. Gold held near record levels as investors balanced haven demand with cautious rate expectations.

In Crypto, digital assets fell sharply over the past 48 hours as traders moved to reduce exposure amid a firmer dollar and weaker risk sentiment.

Bitcoin dropped toward $106,500, down nearly 4%, while Ethereum fell below $3,600 and Solana slid more than 11% to the mid-$160 range.

However, Bitcoin’s dominance rose to almost 61%, suggesting rotation toward larger tokens as overall liquidity tightened.