Crypto Market in "Extreme Fear"
The Crypto Fear & Greed Index dropped to 11 on Monday, indicating "extreme fear" – a level not seen since late 2022. This heightened apprehension coincides with a significant downturn in Bitcoin's price.
Bitcoin's Recent Decline
Bitcoin experienced a continued drop in November, falling below $85,000 for the first time since April. This slide was fueled by a wave of leveraged liquidations and decreasing investor confidence, marking the largest monthly decline since the 2022 crypto winter. After briefly reaching $81,600, the price stabilized around $84,000, effectively wiping out Bitcoin’s gains for the year and returning it to pre-January ETF boom levels.
Broader Market Impact
The downturn isn’t limited to Bitcoin. Other major cryptocurrencies are also suffering losses:
- Ether fell below $2,750, a 14% decrease in the last week.
- Solana dropped over 10% in the past 24 hours.
- XRP, BNB, and Cardano saw declines ranging from 8-15%.
Overall, major cryptocurrencies have retracted 20-35% from their November peaks, with smaller altcoins experiencing even more substantial losses.
Liquidations and External Factors
Over the past 24 hours, approximately $2 billion in positions have been liquidated. Bitcoin accounted for the largest portion, with $964 million, followed by Ether at $407 million. Around 396,000 traders were liquidated, including a single $36.7 million BTC position on Hyperliquid.
"The sell-off coincides with nearly $2 billion in liquidations over the past 24 hours, CoinGlass data show."
External market conditions are providing little support, as global stocks have also experienced their worst week in seven months due to concerns about AI valuations and potential delays in Federal Reserve rate cuts.
Author's Summary: The cryptocurrency market is currently gripped by fear as Bitcoin and other major tokens experience a substantial correction, wiping out earlier gains and triggering significant liquidations amidst broader economic uncertainties.