Bitcoin Regains $103K as Liquidity Conditions Ease, Boosting Market Sentiment
November 9, 2025 — Bitcoin (BTC) recovered above $103,000 on Sunday, leading a rebound across major cryptocurrencies as improving U.S. liquidity conditions helped restore confidence in risk assets.
The move comes after several weeks of weakness that saw BTC retreat from record highs, dragging down ether (ETH $3,524), XRP ($2.52), and solana (SOL $165.68). The latest rally appears tied to signs of easing stress in U.S. funding markets — a shift that could sustain bitcoin above the key $100,000 threshold.
A major driver has been the spread between the Secured Overnight Financing Rate (SOFR) and the Effective Federal Funds Rate (EFFR), which measures dollar liquidity. The spread had spiked to its highest since 2019 last month, tightening financial conditions and strengthening the dollar. As a result, bitcoin briefly slipped below $100,000.
Over the past week, however, that spread has narrowed sharply from 0.35 to 0.05, signaling improved liquidity and softer funding stress. Historically, a tightening of this spread aligns with easier financial conditions — positive for assets like bitcoin.
Additional signs of relief are emerging. Borrowing from the Federal Reserve’s Standing Repo Facility (SRF) — a key liquidity tool — has dropped back to zero after peaking at a record $50 billion, according to ING. Meanwhile, the U.S. dollar index (DXY) has stalled near 100.25, suggesting waning momentum in the dollar’s recent rally.
A softer dollar typically supports bitcoin, viewed by many investors as a hedge against currency debasement and inflation. As of publication, BTC traded at $103,090, up 1.6% in 24 hours, while ETH, XRP, SOL, and BNB gained between 1.5% and 2.5%, according to CoinDesk data.
Key Risks:
Analysts note that bitcoin’s bullish momentum could depend on renewed inflows into U.S.-listed spot ETFs, which have seen nearly $2.8 billion in outflows over the past four weeks. A breakout in the DXY above 100.25 could also weigh on crypto markets.
