Crypto Market Crashes as Bitcoin and Altcoins Slide, Fear and Greed Index Sinks to 17 and Liquidations Surge
The crypto market is in a downward spiral, with Bitcoin (CRYPTO: BTC) and most altcoins being in a deep bear market. Bitcoin has slumped to $66,500, down by 23% from its highest point in October, while the market capitalization of all coins has slumped from near $3 trillion to $2.3 trillion today. Crypto Market Pressured as Fear and Greed Drops The ongoing crypto market weakness is happening as a sense of fear spreads across the market. As a result, the closely watched Fear and Greed Index has slumped to the extreme fear zone of 17. The CNN Money Fear and Greed Index has dropped to the fear zone of 39. Crypto Fear and Greed Index has slumped | Source: CMC These gauges have dropped as investors react to several major events. A key one was the midterm elections in which Democrats won control of Congress by a large margin. As such, hopes of friendly crypto legislation have faded. Od...
The crypto market is in a downward spiral, with Bitcoin (CRYPTO: BTC) and most altcoins being in a deep bear market. Bitcoin has slumped to $66,500, down by 23% from its highest point in October, while the market capitalization of all coins has slumped from near $3 trillion to $2.3 trillion today. Crypto Market Pressured as Fear and Greed Drops The ongoing crypto market weakness is happening as a sense of fear spreads across the market. As a result, the closely watched Fear and Greed Index has slumped to the extreme fear zone of 17.
The CNN Money Fear and Greed Index has dropped to the fear zone of 39. Crypto Fear and Greed Index has slumped | Source: CMC These gauges have dropped as investors react to several major events. A key one was the midterm elections in which Democrats won control of Congress by a large margin. As such, hopes of friendly crypto legislation have faded.
Odds that the Senate will pass the CLARITY Act have also plunged. At the same time, concerns about the Federal Reserve have grown after the latest macro data. Figures released this month showed that the economy created more than 165,000 jobs last month. Another report showed that inflation rose in October, which prompted Christopher Waller to predict that the Fed will hike rates by 0.50%.
As a result, the odds of a December rate hike have soared. Read Also: Elon Musk's Starship Fails to Nail Booster Catch In Ambitious Flight 15 Test for SpaceX, But Upper Stage Reaches Orbit Crypto ETF Demand Has Dropped Amid Liquidations Bitcoin and altcoins have dropped amid the ongoing decline in ETF demand from investors. SoSoValue data shows that spot Bitcoin ETFs lost over $1.07 billion this week, bringing the monthly outflows to $2.35 billion. They lost over $515 million in October.
Spot Ethereum ETFs have lost over $764 million in assets this month after shedding $1.6 billion last month. Other popular altcoin ETFs like Solana (CRYPTO: SOL), Cardano (CRYPTO: ADA), and Hyperliquid (CRYPTO: HYPE) have also lost substantial assets. Meanwhile, liquidations in the crypto industry have jumped as exchanges close losing positions, adding to the pressure. Liquidations jumped to over $1 billion in the last 24 hours, with long positions worth over $870 million being closed.
All these events have affected top crypto stocks. Coinbase (NASDAQ:COIN) stock has dropped by over 38% from its peak in October. Similarly, Gemini Space Station and Robinhood (NASDAQ:HOOD) has dropped to its lowest level since May 28. Read Also: Elon Musk Says He Is ‘Signing’ Petition to Reinstate Jensen Huang as Nvidia Employees Rally Behind Former CEO Image: Shutterstock