Crypto Market Crash: Why Is Bitcoin Dropping to $70,000 Today?
The cryptocurrency market is going through a sharp correction. Bitcoin (BTC) has dropped 7% to $70,000. This drop is mainly...
Quick overview
- The cryptocurrency market is experiencing a significant correction, with Bitcoin dropping 7% to $70,000 due to strict Federal Reserve policies and large sell-offs.
- Analysts predict Bitcoin could decline further towards $60,000 as the market shows signs of 'extreme fear' and significant institutional outflows.
- Over $800 million in leveraged liquidations occurred recently, impacting around 165,000 traders, with the majority coming from long positions.
- Both gold and silver have also fallen despite being considered safe havens, indicating a broader trend of investors moving to cash.
The cryptocurrency market is going through a sharp correction. Bitcoin (BTC) has dropped 7% to $70,000. This drop is mainly due to a strict Federal Reserve policy, large holders selling off, and more than $800 million in leveraged liquidations.
Analysts say Bitcoin could fall further toward $60,000, as technical indicators now show “extreme fear.”
Why Is the Crypto Market Crashing?
The current crypto market crash comes from a mix of big economic and technical pressures. The main reasons are:
- Hawkish Federal Reserve: Signs of ongoing high interest rates have pushed the U.S. Dollar Index (DXY) above 97.5, making investors less interested in riskier assets like Bitcoin.
- Institutional Outflows: Big investors such as BlackRock have sold large amounts of Bitcoin, with $373.8 million leaving spot BTC ETFs recently.
- Whale Activity: Large holders have sold off big amounts, causing a chain reaction and pushing the Crypto Fear & Greed Index into “extreme fear.”
How Much Has the Crypto Market Lost Since the October 10 Crash?
Since the market peak on October 10, the total value of all cryptocurrencies has dropped by $1.87 trillion. Just in the past week, the market lost $650 billion as investors moved their money into the rising U.S. dollar.
$800M Liquidations: What Does This Mean for Traders?
Coinglass reports that more than $800 million was liquidated in the past 24 hours, impacting about 165,000 traders.
- Long vs. Short: Of the total, $650 million came from long positions, while $150 million in short positions were also liquidated.
- Largest Single Trade: The biggest single liquidation was $11.36 million in BTCUSDT on Hyperliquid.
- Hyperliquid Lead: The platform had $50 million in long liquidations, showing that too much leverage is quickly being removed from the market.
Technical Analysis: Is Bitcoin Headed to $60,000?
Technical indicators show the downward trend may continue. For the first time since 2022, Bitcoin has dropped below its 365-day moving average, which is an important long-term support level.
- BTC Bull Score: This sentiment index has dropped from 80 in October to zero, showing clear weakness in the market.
- Net Realized P/L: The 3D-SMA Net Realized Profit & Loss is now at –$317 million per day, which means more investors are selling at a loss.
- Key Support Levels: If Bitcoin falls below $70,000, analysts such as Peter Brandt and Michael Burry say the next support levels are $60,176 and $47,824.
Are Gold and Silver Also Falling?
Yes. Even though gold and silver are usually seen as safe havens, both dropped as the U.S. dollar rose. Gold fell 2%, and silver dropped 13% on Thursday. This shows that many investors are moving to cash across all markets.
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