Investor Appetite for Risk Assets Wanes: Americas Crypto Overview

By Francisco Rodrigues (All times ET unless stated otherwise) Over the last 24 hours, major cryptocurrencies, including Bitcoin, which is currently priced at $86,817.46, have experienced a decline, with the CoinDesk 20 index dropping 2.17%. This downturn is part of a broader market pullback affecting global markets this week. The sell-off began in tech-heavy equity indices such as the Nasdaq 100, which has fallen 3.4% this week. According to a report by Citi, Bitcoin's drop below its 55-day moving average often serves as an early warning sign that risk appetite in equity markets is beginning to diminish. Historically, when Bitcoin remains above this threshold, tech stocks tend to perform better, as noted by Citi. The recent decline in crypto is largely attributed to tighter liquidity conditions. The U.S. Treasury's recent cash replenishment and a decrease in bank reserves, estimated to be around $500 billion since July, have made risk assets less appealing to investors. Although Treasury balances are approaching a point where tightening could potentially pause, as per the report, the market has yet to exhibit significant signs of a turnaround. Meanwhile, stocks related to AI have slumped as investors question valuations and aggressive spending on data centers. This skepticism has spilled over into the crypto market, impacting the price of Bitcoin. Jasper de Maere, an OTC strategist at Wintermute, stated that Bitcoin options positioning remains concentrated between $102,000 and $105,000, with limited potential for upside unless volatility increases. Ether options flows are anchored in the $3,000-$3,400 range, with traders favoring protective strategies over bullish bets. Remain vigilant! Read more: For an analysis of today's activity in altcoins and derivatives, see Crypto Markets Today. Key Developments to Watch For a comprehensive list of events this week, refer to CoinDesk's 'Crypto Week Ahead'. Token-Related Events For a comprehensive list of events this week, refer to CoinDesk's 'Crypto Week Ahead'. Upcoming Conferences For a comprehensive list of events this week, refer to CoinDesk's 'Crypto Week Ahead'. Market Trends Bitcoin Statistics Technical Analysis Overview Crypto-Related Equities Crypto Treasury Companies ETF Investment Flows Spot Bitcoin ETFs Spot Ethereum ETFs Source: Farside Investors Market Developments Overnight