Bitcoin’s price fell below $91,500, erasing all year-to-date gains as the total cryptocurrency market capitalization dropped by 30% since October 6. Traders are betting on further declines in Bitcoin, with demand for downside protection increasing. Economic factors like Nvidia’s earnings report and potential Federal Reserve interest rate cuts are dampening risk appetite. El Salvador added 1,091 Bitcoin during the market dip, while sentiment in the market is at “extreme fear.” Corporate crypto treasuries are under pressure to sell assets to protect balance sheets. The market is experiencing a rapid shift in sentiment, with traders increasingly betting on further declines in Bitcoin. Social media commentators agree that the week started off poorly. Economic factors like Nvidia’s earnings report and potential Federal Reserve interest rate cuts are affecting the broader market. Open interest in crypto futures has declined, with smaller tokens like Solana seeing a drop in positioning.
Leave a Reply