- Bitcoin drops below $106,000, hitting $105,500 in a 4% daily decline.
- Altcoins suffer steeper losses, with Ether down 7% and Solana, BNB, Dogecoin falling 8%-10%.
- Liquidations top $1.1 billion, mostly from long positions, amid heightened volatility.
- Market sentiment hits ‘extreme fear’ as Fed rate cut uncertainties weigh on investors.
The cryptocurrency market endured a sharp selloff on Monday, with Bitcoin slipping below $106,000 for the first time since mid-October, exacerbating losses across major digital assets.
Bitcoin traded as low as $105,500, marking a 4% drop over 24 hours and an 8% weekly decline, according to data from CoinDesk. This move reversed recent stability around $110,000 and echoed the volatility seen during the October crash.
Altcoin carnage: Ether fell 7% to below $3,600, while Solana, BNB, and Dogecoin each tumbled around 9%. The broader market cap dropped to $3.48 trillion, down 3.25%.
The downturn triggered massive liquidations, totaling over $1.2 billion in the past 24 hours, with $1.1 billion from long positions, as reported by FXStreet.
Reasons behind the slide: Analysts point to reduced institutional demand, waning blockchain activity, and concerns over the Federal Reserve’s hawkish stance on interest rates. Fed Chair Jerome Powell’s comments tempered expectations for a December rate cut, leading to $360 million in outflows from crypto investment products last week.
“Right now fundamentals are leading prices in crypto,” said Tom Lee, co-founder of FundStrat, in a CNBC interview, maintaining optimism for a year-end rally with Bitcoin potentially reaching $200,000.
However, CryptoQuant analyst Maartunn noted: “Multiple tests of the same support level are not a bullish sign. It’s hard to put an exact number on it, but at some point new buyers simply get exhausted.”
A related article on the Bitcoin dip can be found at Cryptopress.site.
Disclaimer: This article is for informational purposes only and does not constitute advice of any kind. Readers should conduct their own research before making any decisions.