Bears took a humongous bite of the global crypto market cap with several bearish factors in-play.
The crypto sphere took a major hit on Friday, infused with rising global tariff battle worries, over $560 million in daily Bitcoin (BTC) exchange-traded fund (ETF) outflows, and a sky-high BTC options expiration wall.
As of press time, the showpiece digital asset Bitcoin (BTC) plunged to $104,808, signaling a rare drop below the $105,000 demand territory. Things aren’t looking better for Ethereum (ETH), as the largest Proof Of Stake (PoS) blockchain dwindled to $3.6K.
What’s Driving This Drastic Market Reaction?
With the United States (USA) government in shut-down mode now for more than two weeks, the initial market surge due to crypto’s status as a go-to hedge against the Dollar’s weakness is fading away, shifting the market sentiment towards extreme fear. Bitcoin’s plunge below $110K started accelerating to enormous levels last night, as the United States President Donald Trump was reported to have a long talk on the phone with Russia’s Vladimir Putin.
While the geopolitical shenanigans might have more impact on crypto prices, the $4.8 trillion Bitcoin (BTC) expiration date plays a key role in depicting the market sentiment. According to Deribit, one of the largest Perpetuals markets exchanges across the globe, the people had recently shown appetite towards short-selling on Bitcoin (BTC).
On top of that, real-time CoinGlass daily liquidations figures on Friday paints a picture of extremely over-leveraged plays for the crypto bulls, accounting for over $935 million in liquidations on Perpetuals markets. With a total of $1.19 billion liquidated in 24 hours, short-sellers took some of that fluctuation heat too, resulting in $253.40 million in liquidations.
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