A Warning Sign for Crypto: Daybook Americas

As reported by Omkar Godbole, Eric Trump's prediction about the fourth quarter being remarkable for crypto holders has come true, albeit not in the way crypto enthusiasts had anticipated. Bitcoin has plummeted 28% to $82,000, with a 5% drop in the last 24 hours. The total crypto market capitalization has decreased by 27% to $2.8 trillion. The decline can be attributed to several factors, including the auto-deleveraging event on October 10, the diminishing digital-asset treasury narrative, a strengthening dollar, and reduced expectations for interest-rate cuts in the US. Furthermore, spot bitcoin and ether ETFs are experiencing record redemptions, which could be a sign of institutions preparing for a larger macroeconomic crisis. The crypto market is primarily driven by liquidity and risk-on/risk-off sentiment, which may be indicative of a bigger crisis on the horizon. Several issues, including Japan's fiscal challenges, deteriorating private credit in the US, and a potential significant rally in the dollar, could escalate into a crisis. For now, the crypto market downturn continues, with BTC's price chart showing the next major support at around $75,000 and growing investor interest in deep out-of-the-money puts tied to BlackRock's spot ETF.