Data shows that the market is rapidly losing momentum due to intense selling pressures, with Bloomberg describing the prevailing sentiment among traders as “extreme fear.”
In Asian trading on Friday, “Bitcoin” fell 5.5% to $81,668, its lowest level in seven months, while “Ethereum” fell nearly 6% to $2,661. Despite recovering some of these losses later, both currencies remained at losses exceeding 12% in one week.
Analysts believe that this situation reflects a decrease in risk appetite with declining bets on US interest rate cuts. Data from “CoinGecko” indicates that $1.2 trillion has evaporated from the market value of cryptocurrencies in just six weeks.
Bloomberg reported that “Bitcoin” is heading for its worst monthly performance since 2022 after falling by about a quarter of its value in November, while the total value of digital assets fell below $3 trillion for the first time since April.
The agency links this collapse to a series of massive liquidations that began on October 10, wiping out $19 billion from leveraged positions, reflected in a $1.5 trillion loss in market value. An additional $2 billion was liquidated in recent hours.
Reuters says that 12 US exchange-traded funds for “Bitcoin” recorded outflows of $903 million in one day, the second-largest outflow since their launch in 2024.
Bloomberg reveals that an old wallet known as “Oiwan Gandan” – which has been active since 2011 – began selling $1.3 billion worth of “Bitcoin” since late October, and that it closed its last positions on Thursday, further increasing pressure on the market.
The investor sentiment index also recorded its lowest level since the 2022 crash, a level the agency describes as “extreme fear.”
Portfolio managers confirm that the market is currently experiencing a decline in confidence with an unidentified “forced seller” whose full impact remains to be seen.
(Bloomberg + Reuters)
