The crypto market cap has declined to June levels as fears over market regression continue to grow.
Crypto markets opened the third week of November in the red, with total market value slipping below $3.3 trillion, a level last seen in June.
The pullback comes as Bitcoin (BTC) briefly tested $93,000 over the weekend and earlier today, before rebounding to around $94,000 at press time, flat for the day, with concerns of another decline still pending.
Ethereum (ETH) is also stable over the past 24 hours, around $3,180, reaching a low of $3,000 over the weekend. BTC and ETH have lost 10-11% over the past seven days. The rest of the top 20 assets by market cap are mostly flat on the day, with weekly losses ranging between 3% and 17%. Among large caps, XRP stands out, up 2% in the last 24 hours.
The Crypto Fear and Greed Index, a multi-factor analysis of market sentiment, shows that market sentiment entered extreme fear starting this weekend, after a slight recovery last week.
Bull-bear equilibrium
As Glassnode analysts noted in an article According to analysts, this unusual divergence between BTC and altcoins is “unprecedented in previous cycles.”
Analysts at QCP Capital highlighted that BTC now sits above “key support” at $92,000, a level that served as a “strong base in the fourth quarter of last year and the first quarter of this year.”
Although a fall below the 50-week moving average indicates a medium-term bearish trend, analysts said a true long-term reversal would only be confirmed if Bitcoin breaks key support levels at $88,000 and $74,500.
“For now, the crypto bull cycle is in play. A short-term rebound may occur, but the path of least resistance remains lower,” QCP Capital wrote in a market update.
Meanwhile, analysts at Keyrock suggested in a Monday update that the market is now caught between “a data vacuum and a Fed that continues to be hawkish, and this combination creates a wider range of potential outcomes than current prices reflect.”
Major movers and liquidations
Among the top 100 assets today, Uniswap (UNI) and Ethena (ENA) stand out as the best performers, up 6% and 3.6%, respectively.
In contrast, Pumpfun (PUMP) and Internet Computer (ICP) were the biggest losers today, down 9% and 7%.
Data from Coinglass shows that $765 million in leveraged positions were liquidated in the past 24 hours, with long positions accounting for $423 million and short positions accounting for almost $341 million. BTC liquidations led with over $337 million liquidated, followed by ETH with $175 million and Zcash (ZEC) with $45 million.
ETF and macro conditions
Last week, Ethereum spot exchange-traded funds saw outflows of over $728 million, making it the third-largest weekly outflow in spot ETH ETF history. Meanwhile, spot Bitcoin ETFs saw net outflows of more than $1 billion for the second week in a row, bringing the total net asset value to $125.3 billion, according to SoSoValue data.
On the macro side, U.S. Treasury yields fell slightly on Monday as traders prepared for a busy week of long-delayed economic data. 10-year yields fell to around 4.13%, 2-year yields to around 3.60% and 30-year yields to around 4.72%.
With the US government reopening, everyone is now waiting for the release dates of major US economic reports, including employment and inflation data. The first drop occurs this Thursday, November 20, with non-agricultural payrolls for September, according to the Bureau of Labor Statistics.
The next day, the BLS will release the actual results, a report that normally contains Consumer Price Index (CPI) data but was delayed because employment data did not arrive on time in October.
