The global crypto market fell to a five-month low of $3.45 trillion, with Bitcoin and Ethereum down 18% and 27% respectively in the month. The fall added to $830 billion in losses for investors, while the Fear & Greed Index fell to “extreme fear.”
The main reasons included macroeconomic concerns following the US government shutdown, weak PMI data, and a hawkish tone from Fed officials who dismissed expectations of a rate cut. The US dollar index surged above 100, putting pressure on riskier assets like crypto.
Crypto whales and long-term holders took big profits, selling nearly $50 billion worth of BTC since October. The Balancer hack and XUSD depegging also dented investor confidence.
Bitcoin and Ethereum spot ETFs saw consecutive institutional outflows, indicating widespread bearish sentiment. Meanwhile, the “Hindenburg Omen” technical indicator and high leverage liquidation accelerated the sell-off.
Finally, $1.5 billion in crypto futures positions were liquidated in the last 24 hours, signaling deep selling pressure amid a combination of macro tensions, institutional outflows, and heightened market risk. BTC is trading at $104,287.37, down 3.6% in 24 hours.
