Crypto Markets Under Strain as Bitcoin and Ether Decline, Altcoins Suffer: Americas Crypto Update

By Francisco Rodrigues (All times ET unless otherwise stated) A significant downturn has hit the cryptocurrency market, with Bitcoin briefly dipping below $100,000 for the first time since June. This decline is attributed to a surge in liquidations and shifting macroeconomic expectations, triggering a widespread sell-off in the crypto space. Bitcoin, the leading cryptocurrency, has now fallen by over 20% from its all-time high of above $126,000, which was reached in early October. The broader cryptocurrency market, as measured by the CoinDesk 20 (CD20) index, has dropped by 2.6% over the past 24 hours and more than 27% over the past 30 days. The sell-off has intensified over the past 24 hours, with over $1.7 billion in crypto positions being liquidated, according to CoinGlass. Long traders have borne the brunt of these losses. "Since the ~$19B liquidations on 10/10, markets have been cascading lower,” Jasper De Maere, an over-the-counter trader at Wintermute, told CoinDesk. “The current weakness is a result of ongoing digestion of 10/10, a slightly more hawkish Fed tone, and a broader risk-off sentiment across assets, with the Nasdaq, crypto’s closest proxy, down ~2% on valuation concerns.” Bitcoin is now struggling to maintain a key level, its 50-week simple moving average, which has historically supported its long-term price recoveries. This level is currently just under $103,000. "The sell-off serves as a reminder that liquidity remains thin, particularly in long-tail alts, resulting in outsized negative price action, further exacerbated by a marketwide flight to safety,” De Maere said. The recent $128 million hack on Balance has raised fresh concerns about security in the decentralized finance ecosystem, further dampening market sentiment. As it stands, market sentiment has taken a hit, with the Crypto Fear and Greed Index now indicating "fear.” Near-term catalysts are limited, according to De Maere, although the U.S. government reopening and supportive crypto legislation could potentially support prices. Stay alert! Key Events to Watch For a more comprehensive list of events this week, see CoinDesk's "Crypto Week Ahead". Token Events For a more comprehensive list of events this week, see CoinDesk's "Crypto Week Ahead". Conferences For a more comprehensive list of events this week, see CoinDesk's "Crypto Week Ahead". Token Talk By Oliver Knight Derivatives Positioning Market Movements Bitcoin Stats Technical Analysis Crypto Equities Crypto Treasury Companies ETF Flows Spot BTC ETFs Spot ETH ETFs Source: Farside Investors While You Were Sleeping