US financial markets have been on a rollercoaster in the week leading up to November 8, 2025, as a potent mix of falling consumer sentiment, tech stock pullbacks, and crypto market turbulence created a tense environment for investors. While traditional equities wobbled, energy stocks and alternative assets like bitcoin and gold managed to hold their ground, reflecting a market searching for safety amid growing uncertainty.
According to MT Newswires, the week saw a broad sell-off in major US stock indices. The iShares S&P 500 and Russell 2000 exchange-traded funds (ETFs) both finished lower, with technology, communication services, and consumer discretionary stocks leading losses. Invesco QQQ, a tech-heavy ETF, dropped 1.6% as the sector spearheaded the retreat. The pullback was exacerbated by a sharp drop in the Michigan consumer sentiment index, which highlighted that Americans are increasingly anxious about the economic outlook.
This anxiety was further confirmed by the University of Michigan survey, which, as reported by Cointelegraph, revealed that US consumer sentiment expectations had plunged to their lowest levels ever in early November 2025. November’s reading was the second weakest since at least 1978, and much of the blame was pinned on the ongoing US government spending shutdown—the longest in American history. The shutdown’s economic drag has become a central concern for both Wall Street and Main Street.
As investors digested this gloomy news, the market’s appetite for risk evaporated. Popular growth sectors like technology and semiconductors, which had previously driven gains, were hit hard. Financials and health care also slumped, reflecting a broad-based retreat from assets tied to economic growth. The Nasdaq index, a bellwether for tech stocks, corrected down 4% over the week, erasing the gains it had made in the prior two weeks.
Yet, not all sectors suffered equally. The energy sector managed to post gains, even as oil prices softened. Consumer staples—those companies that sell everyday essentials—outperformed more cyclical, discretionary names, as investors sought shelter in defensive stocks. Meanwhile, safe-haven demand pushed gold and silver, along with their related ETFs, higher. This surge in precious metals is part of a wider global trend, as investors look for diversification and alternative assets when the future seems uncertain.
Perhaps most intriguing was the resilience of cryptocurrency assets. Bitcoin and funds tracking digital currencies bucked the negative trend, rallying as investors broadened their search for reliable returns. Crypto’s rally, highlighted by rising bitcoin and ether-related funds, suggests that digital assets are increasingly viewed as hedges against instability, even as traditional markets falter.
However, not all cryptocurrencies shared in this optimism. Ether (ETH), the native token of the Ethereum blockchain, fell 11% over the week ending November 8, 2025, even after briefly touching $3,400. Cointelegraph noted that this drop coincided with a 4% correction in the Nasdaq, underscoring how tightly crypto and tech stocks have become linked in the minds of investors. Traders are now debating whether ETH can reclaim the $3,900 level, but the mood remains cautious.
Several factors have weighed on Ethereum’s performance. First, the total value locked on the Ethereum network—a key metric of its decentralized finance (DeFi) ecosystem—dropped by 24% over the previous 30 days, reaching $74 billion, the lowest since July 2025. This decline was exacerbated by a $120 million exploit on Balancer v2, one of Ethereum’s leading DeFi platforms, on November 3. The incident rattled confidence and prompted many investors to pull funds from DeFi protocols.
Ethereum’s decentralized applications (DApps) also faced headwinds, generating $80.7 million in revenue in October, an 18% decline from September. This decrease in onchain activity puts downward pressure on the native staking yield, a key incentive for ETH holders. As Cointelegraph explained, Ethereum’s design includes a mechanism that burns ETH during periods of high demand for blockchain data processing, helping balance network activity and supply. Lower activity means less ETH is burned, potentially impacting price dynamics.
Adding to the malaise, US-listed Ethereum spot ETFs recorded $507 million in net outflows during November, with no notable ETH corporate reserve purchases. This lack of institutional demand has weighed heavily on trader sentiment, which is further reflected in derivatives markets. Ethereum futures traded at a 4% premium to spot markets during the week, indicating limited bullish appetite. Under normal conditions, this premium typically sits between 5% and 10% to account for the longer settlement period, so the subdued level points to a muted outlook for Ether’s price.
Despite these challenges, there were glimmers of hope for Ethereum. In the first week of November, active addresses on the network climbed 5%, and transactions rose 2%. By contrast, rival blockchains like Tron and BNB Chain saw declines in onchain activity, suggesting that Ethereum may be regaining some ground in the competition for blockchain users.
Looking ahead, the Ethereum community is pinning its hopes on the upcoming Fusaka upgrade, planned for early December 2025. The update is expected to deliver several scalability and security enhancements to the network. While this could serve as a catalyst for renewed interest, the overall market mood remains cautious, with derivatives markets signaling weakness and investors wary of a slowing global economy.
The bigger picture is one of a market in transition. As MT Newswires observed, the week’s moves highlight a shift in priorities as investors brace for volatility. Money is moving out of growth sectors like technology and into defensive sectors such as energy, consumer staples, and precious metals. Crypto’s resilience, especially bitcoin’s, hints at a growing appetite for alternative assets, even as Ethereum faces specific challenges tied to its ecosystem and investor sentiment.
For now, the sharp dip in consumer sentiment has spooked investors, sparking drops across health care, industrials, and financials. Semiconductors have led tech’s pullback, while energy’s steady performance and increased demand for safe havens suggest that investors remain cautiously optimistic—but are taking precautions as doubts creep in about how long market gains can last.
As the US government shutdown drags on and economic uncertainty persists, the coming weeks will test whether defensive plays and alternative assets can continue to provide shelter—or if further turbulence lies ahead for both Wall Street and the world of crypto.
