1. It's been a bad start to the week for cryptocurrencies: Bitcoin fell to a low below $95,000 on Monday, and remains below the key $100,000 threshold as of Tuesday morning.

  2. BTC/USD is down 2% over 24 hours at the time of writing. Altcoins, meanwhile, have suffered even steeper losses, with XRP down over 10% since yesterday and Dogecoin down 7.7%.

  3. However, losses have been mitigated since Monday, although several top 20 tokens saw 24-hour drops of up to 20% at the worst of the day.

  4. Overall, the total cryptocurrency market cap fell 6.6%, marking its worst decline in two months. The decline was compounded by massive liquidations: Nearly 514,400 traders saw their positions liquidated, worth $1.38 billion for longs and $136.7 million for shorts, according to data from Coinglass. This was the largest day of liquidations in the cryptocurrency market since 2021. As a reminder, a liquidation occurs when a platform forcibly closes a trader’s leveraged position because the trader can no longer meet margin requirements.

  5. Despite this, spot Bitcoin ETFs continued to attract significant flows, with nearly $500 million in new investments recorded on Monday alone.

  6. As for the causes of this decline, investors remain anxious as they await the US inflation data for November, which will be published tomorrow afternoon. These figures could influence expectations regarding the Fed’s decision scheduled for next week. Indeed, data above consensus would reduce the probability of a rate cut, which would be a negative factor for cryptocurrencies.

  7. In this environment, the most likely scenario for Bitcoin and major cryptocurrencies remains indecision, providing an opportunity to spot the best opportunities for a bullish recovery, especially if the US Consumer Price Index (CPI) due tomorrow proves favorable.

$BTC $XRP $ETH


#Down #market