The crypto market fell 1.22% over the last 24 hours, aligning with profit-taking, leveraged liquidations, and fading institutional ETF inflows.
Liquidation cascade – $267M liquidations ($180M longs) triggered forced selling.
ETF outflows – U.S. Solana ETFs saw record $32M single-day outflows.
Fear sentiment – CMC Fear & Greed Index dipped to 25 (Extreme Fear).
Deep Dive
1. Leverage Unwind (Bearish Impact)
Overview: Over $267M in crypto positions were liquidated in 24 hours, with longs ($180M) hit hardest. Bitcoin liquidations totaled $87.67M, up 40% for longs but down 58% for shorts.
What it means: Excessive bullish leverage (average funding rate +0.0027%) amplified downside as prices dipped below key levels.
Watch for: Open interest (-6.3% 24h) and funding rate trends.
2. Institutional Hesitation (Mixed Impact)
Overview: U.S. spot Bitcoin ETFs saw $13.44M outflows (Dec 3), while Solana ETFs bled $32.19M on Dec 4 (CoinMarketCap).
What it means: Profit-taking and risk reduction by institutions added selling pressure, though Bitcoin’s Coinbase Premium turned positive, signaling renewed U.S. accumulation.
3. Technical Breakdown (Neutral/Bearish)
Overview: The total crypto market cap ($3.14T) broke below its 30-day SMA ($3.18T). RSI14 (65.64) cooled from overbought territory.
What it means: Loss of momentum near the 50-week resistance zone ($3.23T Fibonacci level) invited short-term traders to lock in gains.
Conclusion
Today’s dip reflects a blend of leveraged long squeezes, institutional caution, and technical resistance. While the Fear & Greed Inde$BTC
#USJobsData #CryptoRally x suggests panic, Bitcoin’s dominance (+58.68%) hints at a flight to relative safety. The key question: Can ETF inflows rebound post-Fed liquidity shifts, or will altcoins face further rotation?$
