The recent crypto market plunge has been exacerbated by a combination of factors, including $312 million in upcoming token unlocks, which could introduce additional supply and potentially intensify the current pullback. Other contributing factors include :#Market_Update
- Federal Reserve Uncertainty: The Fed's cautious stance on interest rates has tempered expectations of continued monetary easing, strengthening the US dollar and reducing investor interest in risk assets like cryptocurrencies.
- Massive Liquidations: Over $1.2 billion in liquidations has hit the crypto market, with long positions bearing the brunt of the losses, and $1.16 billion in liquidations affecting over 300,000 traders.
- ETF Outflows: US Bitcoin spot ETFs saw $1.15 billion in net outflows last week, marking one of the largest weekly withdrawals since early 2024, led by funds from BlackRock, ARK Invest, and Fidelity.
The market's current state is characterized by :
- Extreme Fear: The Crypto Fear and Greed Index has dropped to 21, indicating "Extreme Fear" in the market.
- Declining Institutional Demand: Institutional demand for Bitcoin has dipped below new coin supply, signaling a cautious mood among large buyers.
- Price Volatilit: Bitcoin's price has been volatile, with a recent drop below $106,000 and trading around $107,000.
As for whether the crypto market plunge is just getting started, it's uncertain. Some analysts warn that the market could face further corrections, while others see potential for a rebound .
Buy and trade here 👇#SmartInvesting