The total market value of all cryptocurrencies is declining, and exchange-traded funds investing in Bitcoin have experienced outflows of hundreds of millions of dollars.
UNN reports with reference to Bloomberg.
Details
Bitcoin fell even further below the $100,000 mark. On Friday, the largest digital asset fell by 2.8% to less than $96,000. Many positions in the cryptocurrency market are under pressure, affected by significant outflows.
On Thursday, the negative cash flow amounted to approximately $870 million.
The crypto market remains under pressure after $19 billion in liquidations on October 10, in turn, wiped over $1 trillion from the total market value of all cryptocurrencies, CoinGecko data shows. Liquidations continue, and according to CoinGlass data, over $1 billion in leveraged crypto bets have been wiped out in the last 24 hours.
Liquidity has also sharply decreased. According to Kaiko, the market's ability to absorb large trades without significant price fluctuations (i.e., market depth) has "sagged" by approximately 30% from this year's high.
"With Bitcoin turning negative since President Trump's inauguration and the overall crypto market cap up year-to-date, there is little technical support from here to the low $90,000s, and sentiment is likely to remain depressed until further notice," explained Augustin Fan, partner at SignalPlus.
Recall
In early November, the price of Bitcoin fell to $107,000 due to fears of cooling economic relations between the US and China. In October, Bitcoin lost about 5%, which was the first drop in that month since 2018.