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Bitcoin dropped below $106,505.22 on Nov. 3, down 3.6% in 24 hours, as a strengthening US dollar and sustained ETF outflows pressured crypto across the board. As of press time, Bitcoin has lost that key support level, now trading below $104,000 for the first sustained time since June.

Ethereum trades at $3,490, falling 9%, while Solana declined 13% to $159. XRP, Cardano, Dogecoin, and BNB each posted double-figure losses.

The DXY dollar index traded at 99.886 as of press time, up 0.2% and near a three-month high following a 0.8% weekly gain.

The dollar’s strength typically weighs on Bitcoin because crypto functions as a non-yielding alternative asset. When the dollar rises, investors shift toward dollar-denominated instruments that offer positive real yields, thereby reducing demand for Bitcoin and other digital assets.

Additionally, traders positioned defensively ahead of this week’s US economic data releases, following the Federal Reserve’s hawkish tone in its latest policy statement.

The week features several high-impact reports. ISM manufacturing data is released on Nov. 3, and services PMI and ADP employment numbers are released on Nov. 5.

The week closes on Nov. 7 with the nonfarm payrolls report, the most closely watched indicator of the labor market.

University of Michigan consumer sentiment data, also due Nov. 7, rounds out a data-heavy schedule that will inform Federal Reserve policy expectations and dollar direction.

Adding to the selling pressure, US spot Bitcoin ETFs recorded $1.15 billion in cumulative outflows from October. From Oct. 29 through Oct. 31, according to Farside Investors’ data. This added selling pressure as November opened.

Those redemptions removed a structural support layer that had absorbed selling from crypto-native participants during earlier market declines, as ETF flows function as demand stabilizers.

Derivatives liquidations compounded the decline. CoinGlass data shows nearly $1.15 billion in long positions liquidated in the past 24 hours, with approximately $330 million concentrated in Ethereum futures after ETH fell below the $3,900 threshold.

Liquidations occur when leveraged traders’ positions close automatically as prices move against them, creating forced selling that accelerates downward momentum.

The combination of macroeconomic headwinds, dollar strength tied to the Fed’s hawkishness, and market structure pressures from ETF outflows and derivatives liquidations created conditions where selling reinforced itself across spot and futures markets.

This week’s US economic data releases will determine whether the dollar sustains its recent strength. Any reversal in DXY would ease pressure on Bitcoin and broader crypto markets.

Until then, the absence of ETF inflows and the overhang from liquidated leveraged positions leave digital assets vulnerable to continued volatility.

• The feature applies to more than 150 perpetual futures markets available to European users.
• The exchange operates under MiCA and MiFID II regulations, with oversight from Ireland and Cyprus.
• Kraken’s third-quarter revenue rose by 50% to $648 million following its acquisition of NinjaTrader.

Kraken has expanded its regulated derivatives offering in the European Union, allowing traders to use Bitcoin, Ethereum, and approved stablecoins as collateral for perpetual futures on Kraken Pro.

Announced on 3 November, the move makes Kraken one of the first licensed exchanges in Europe to support crypto-collateralised derivatives under the Markets in Crypto-Assets (MiCA) framework.

The feature strengthens Kraken’s position in Europe’s digital asset market by combining capital efficiency with regulatory compliance.

By allowing clients to post crypto assets instead of converting them into fiat, the exchange provides faster access to liquidity while remaining under strict oversight from European regulators.

Crypto as margin on Kraken Pro

European traders can now use Bitcoin, Ethereum, or select stablecoins as margin across more than 150 perpetual futures markets.

Collateral is converted to USD for liquidation and margin calculations, standardising risk management while maintaining crypto exposure.

Kraken’s operations are covered by its MiCA licence from the Central Bank of Ireland and supervision by the Cyprus Securities and Exchange Commission.

The exchange uses volatility-based margin haircuts to manage exposure to price swings. All custody arrangements comply with the Markets in Financial Instruments Directive II (MiFID II), ensuring full investor protection under European law.

The feature allows traders to access up to 10x leverage using crypto collateral. It reflects Kraken’s ongoing strategy to align its trading products with Europe’s unified digital asset rules ahead of MiCA’s full rollout in 2025.

A shift in EU derivatives

Kraken’s expansion comes at a time when Europe is tightening oversight of crypto products while promoting innovation through consistent regulation.

By offering crypto-collateralised futures under direct supervision, the exchange positions itself at the forefront of compliant derivatives trading in the EU.

The integration benefits institutional and retail traders seeking efficient and legally sound ways to trade leveraged crypto products.

Hedge funds and corporate treasuries can now operate within clear regulatory limits, signalling the increasing maturity of Europe’s digital derivatives market.

This move also strengthens the region’s financial infrastructure. Transparent liquidation procedures and regulated custody standards align digital assets with traditional financial norms, helping reduce risk and improve trust.

As other licensed exchanges follow Kraken’s lead, the EU could become a global hub for compliant digital asset trading.

Growth supports expansion

The announcement follows a strong financial quarter for Kraken. The exchange reported revenue of $648 million in the third quarter, a 50% rise from the previous quarter.

The increase was driven by higher trading volumes and new product integrations following the acquisition of NinjaTrader, a futures and forex trading platform.

This momentum underlines Kraken’s ability to grow while maintaining regulatory standards. By embedding compliance into its strategy, the company is building credibility and scale in an increasingly regulated environment.

As MiCA rules continue to take effect, exchanges that prioritise both innovation and compliance are expected to capture greater institutional interest.

Kraken’s integration of crypto collateral into a regulated derivatives framework demonstrates how digital assets can function securely within Europe’s financial system.

The development marks a shift from speculative trading to a more structured market, where transparency and protection guide participation.

For the European Union, this represents progress toward establishing a regulated, sustainable, and globally competitive digital asset economy.

Decentralized finance platform Stream Finance says it has paused deposits and withdrawals after an external fund manager overseeing its funds found a $93 million loss in its assets. 

The Stream Finance team said in an X post on Monday that the fund manager reported the loss on Sunday and the project has since hired lawyers from Perkins Coie to investigate the incident.

“We are actively withdrawing all liquid assets and expect this process to be completed in the near term,” it said. “We will provide periodic updates as additional information becomes available.”

While Stream Finance investigates the problem, the platform has temporarily suspended withdrawals and will not process any pending deposits. 

Stream’s stablecoin drops by half  

Stream Finance is a “recursive looping” yield-focused DeFi platform that also has a collateralized stablecoin called Staked Stream USD (XUSD).  

Related: Balancer audits under scrutiny after $100M+ exploit

Before Stream Finance posted on X on Monday, XUSD had already started to depeg below a dollar as many users had sensed trouble on Sunday, questioning why deposits and withdrawals had been paused without communication from the team.  

Labs founder Omer Goldberg posted on X about 10 hours before Stream’s announcement that XUSD had “began to depeg materially below its target range” after an over $100 million exploit on the automated market maker Balancer.

At the time of writing, XUSD has dropped to as low as $0.51, according to data from CoinGecko. 

On Friday, Stream Finance posted to X in response to community questions about discrepancies between the platform’s total value locked (TVL) reported on its website and what was listed on the popular data service DefiLlama. 

“DefiLlama has decided that recursive looping is not TVL per their own definitions. We disagree with this, but to be transparent to users the website now makes a distinction between user deposits (~$160M) and total assets deployed across strategies. (~%$520M),” it said.