The crypto market is having a rough week, with all of the top 50 cryptocurrencies barring stablecoins posting overnight losses.
Of the top 10 cryptocurrencies by market cap, Dogecoin (DOGE) and Cardano (ADA) have taken the biggest hits, while Solana (SOL) and XRP have also dropped by double digits in the past 24 hours, according to data from CoinGecko.
Over the past day, Dogecoin fell 12% to $0.37 while Cardano dropped 14.7% to $0.90. Solana dropped 10% to $227, while XRP dipped by 10.7% to $1.33.
Bitcoin (BTC) wasn't spared either, dropping 6.1% to $92,362, while Ethereum eased down 4.5% to $3,324.
"The market had become extremely overbought since the election with excessive leverage, making a pause inevitable," QCP Capital said in its most recent broadcast.
Bitcoin's decline, in particular, is said to have coincided with spot ETFs ending a five-day streak in terms of net inflows, QCP Capital noted. Monday saw outflows amounting to $435 million, according to data from Farside Investors.
Liquidation data from CoinGlass shows over $691 million wiped out for over 180,000 positions. Bitcoin traders felt the most pain with roughly $150 million in long liquidations, but the real drama came from a single whale on Binance who lost $4.67 million in one shot when their long position got wiped out.
What's next: FOMC minutes, PCE data
Two key macro indicators are coming one after the other starting Tuesday night. QCP Capital notes that concerns about downside risks "may intensify" as these get released.
First up are the Fed's minutes for its November meeting. The Fed's latest meeting wrapped up with a rate cut that everyone saw coming, though they changed up how they talk about inflation and their overall goals. Powell kept things relatively mild with his comments, basically saying the economy's doing well but that they'd stay flexible with future moves.
Next up is the PCE data drop ahead of Thanksgiving due Wednesday, which looks like it might show inflation ticking up a bit based on other recent numbers. Traders are somewhat split on whether another rate cut is coming by December, with just over half betting it'll happen — though as usual, these will come down to what the economic numbers tell us.
At least for now, the general view sees the past week's momentary pause as a healthy correction rather than the start of a longer downward trend.
