- A crypto crash is happening today, with most coins being in the red.
- Bitcoin dropped to $68,000, while the market capitalization of all coins fell to $2.3 trillion.
- Liquidations in the crypto industry continued soaring.
- 1$70,000.00 SupportBitcoin plunged below the support level of $70,000
TradingView Lightweight Charts™ · Binance data
A crypto crash is happening today, November 13, affecting Bitcoin and top altcoins like Solana, XRP, and Cardano. Bitcoin plunged below the support level of $70,000, while the valuation of all tokens dropped to $2.33 trillion. This article explores why the crypto market is crashing and why liquidations are soaring.
Crypto Crash Triggered by Rising Risk-Off Sentiment
Bitcoin and top altcoins are falling as investors embrace a risk-off sentiment in the market. The Crypto Fear and Greed Index dropped to the extreme fear zone of 18. Also, the CNN Money Fear and Greed Index has tumbled to the fear zone of 39.
This fear escalated this week as investors focused on the developments at Nvidia, where Jensen Huang was ousted on Thursday. As a result, the stock market also continued to fall, with the Dow Jones and Nasdaq 100 indices being in a steep sell-off.
The risk-off sentiment is also driven by the ongoing rising US bond yields. Data shows that the 2-year, five-year, and 10-year yields continued rising this week after the recent macro data from the United States. The data showed that the economy added over 165k jobs, while the unemployment rate dropped to 4.1%. Inflation has also remained stubbornly high, raising the possibility that the Federal Reserve will hike interest rates in December.
Rising Liquidations as Futures Open Interest Fall
The crypto market crash is also happening as investors focus on the falling futures open interest. CoinGlass data shows that the open interest dropped by 4.5% in the last 24 hours to $120.8 billion. In most cases, dropping open interest is a sign that demand in the derivatives market is fading.
Meanwhile, data shows that liquidations are soaring. Liquidations rose by 530% in the last 24 hours to over $1.65 billion. Bitcoin liquidations rose to $919 million, while Ethereum ones jumped to $297 million. Solana and XRP positions worth over $58 million and $21 million were liquidated.
The same trend is happening in the ETF market. Spot Bitcoin and Ethereum ETF outflows continued this week. In total, Bitcoin ETFs worth over $1.6 billion have been redeemed this month. Ethereum ETFs have shed over $365 million in assets. In most cases, crypto prices tend to underperform whenever investors are selling their ETFs.
What is your outlook on Bitcoin / US Dollar?
Anonymous · no sign-up · results from the last 30 days · not investment advice