Crypto Markets Tumble: Bitcoin Fails to Break $110k, Market Cap Drops 4.9%
Cryptocurrency markets experienced a turbulent day, with Bitcoin failing to breach $110,000 and the total market cap dropping significantly. Options flow data, though not sourced, indicated heavy put demand and substantial short-term risk.
Bitcoin, the world's largest cryptocurrency, struggled to maintain its upward trajectory, falling to approximately $106,409. This decline was exacerbated by increased short selling. Meanwhile, spot Bitcoin ETFs witnessed $536 million in net outflows, reflecting investor caution.
The overall crypto market cap plummeted by around 4.9% to $3.6 trillion, indicating a broad-based sell-off. In the past 24 hours, roughly $690 million was liquidated across various cryptocurrencies. Ethereum ETFs also saw significant outflows, totalling $56.88 million.
Geopolitical tensions, including a potential 100% tariff and the ongoing U.S. government shutdown, contributed to market unease. The Fear & Greed index plummeted to 22, reflecting investors' heightened anxiety.
Despite the overall market downturn, small-to-mid Bitcoin holders continued to accumulate the cryptocurrency. Additionally, miners deposited around 51,000 BTC since October 9, suggesting they remain optimistic about Bitcoin's long-term prospects.
The cryptocurrency market faced a challenging day, with Bitcoin's price decline and significant outflows from ETFs. Geopolitical tensions exacerbated market fears, leading to a substantial drop in the total market cap. However, small-to-mid Bitcoin holders and miners continued to show confidence in the asset.
