Crypto Market Slumps Below $3T Amid $1B Liquidations
Crypto market capitalization fell from $3.38 trillion to $2.95 trillion in late November, marking the lowest level since May. Bitcoin dropped below $100,000, hitting $95,900, while Ethereum, Solana and XRP fell over 6%. The downturn triggered roughly $1.1 billion in liquidations and pushed derivatives open interest down 7% to $133 billion. The average market RSI eased to 39, and the Crypto Fear & Greed Index fell to 15, indicating extreme fear. Traders attributed the sell-off across the crypto market to macro pressures—delayed Fed rate cuts, lingering liquidity strains after October’s flash crash—and $4 billion in spot BTC and ETH ETF outflows. On-chain data shows record exchange outflows even as institutions have accumulated over 4 million BTC this year. Analysts see support for Bitcoin between $90,000–$98,000. Potential catalysts for recovery include the Fed ending quantitative tightening on December 1, increased Treasury spending and halving-driven rallies projected toward $145,000 by Q4 2025. Experts suggest this pullback offers a mid-cycle reset and a buying opportunity ahead of easing monetary policy.
Bearish
These developments are bearish for Bitcoin prices in the short term due to intensified selling pressure. The liquidations of over $1 billion, record exchange outflows and macroeconomic uncertainties have pushed BTC below key support levels and fueled extreme fear among traders. While analysts highlight potential mid-cycle resets and long-term catalysts—such as the Fed ending quantitative tightening, increased Treasury spending and the 2025 halving—immediate market momentum remains weak. Traders should expect continued volatility and downward pressure until clearer policy easing and renewed ETF inflows emerge.