Bitcoin Rebounds Above $103K as Liquidity Eases, Dollar Rally Stalls

November 9, 2025 — Bitcoin (BTC) rebounded above $103,000 on Sunday, lifting major altcoins and signaling renewed strength after several weeks of sharp declines from record highs. The move comes amid signs of improving liquidity in the U.S. financial system, which could bolster investor appetite for risk assets.

BTC’s recovery follows a sharp retracement that had pressured the broader market, including ether (ETH $3,524), XRP ($2.52), and solana (SOL $165.68). But a key macro shift — the narrowing spread between the Secured Overnight Financing Rate (SOFR) and the Effective Federal Funds Rate (EFFR) — now points to easing financial stress.

The SOFR-EFFR spread, which reflects liquidity conditions in the U.S. banking system, spiked to its highest since 2019 late last month, signaling funding tightness and driving a rally in the dollar. As the spread widened, Bitcoin briefly broke below $100,000.

However, that stress appears to have subsided. The spread has since fallen to 0.05 from 0.35, its sharpest contraction in months, suggesting looser financial conditions and fading risk aversion. Historically, a narrowing spread supports risk assets like crypto.

Other indicators confirm the improvement. Borrowing from the Federal Reserve’s Standing Repo Facility (SRF) — a key backstop for short-term funding — has dropped to zero after hitting a record $50 billion earlier this month, according to ING data. At the same time, the U.S. dollar index (DXY) has stalled near resistance at 100.25, signaling exhaustion in its recent rally.

A softer dollar often correlates with stronger crypto performance, given bitcoin’s role 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 advanced between 1.5% and 2.5%, according to CoinDesk data.

Key Risks:
Flows into U.S.-listed spot bitcoin ETFs will be closely watched after $2.8 billion in outflows over the past month. A renewed breakout in the DXY above 100.25 could also limit upside momentum for BTC in the near term.