đ¨ Why is the crypto market crashing? And whatâs happening with Bitcoin right now?
The crypto market is experiencing a strong downturn, with selling pressure increasing. Bitcoin has fallen to around $66,500 after dropping below $70,000 for the first time since August.
đ What are the main reasons behind this decline?
1ď¸âŁ U.S. inflation:
The latest inflation data came in higher than expected, increasing fears that the U.S. Federal Reserve (FED) could raise interest rates again in December.
2ď¸âŁ A stronger dollar:
The U.S. dollar has reached its highest levels since April 2025, adding pressure on high-risk assets like Bitcoin and other cryptocurrencies.
3ď¸âŁ Outflows from Bitcoin ETFs:
U.S. Bitcoin investment funds have recorded consecutive outflows for 7 sessions, totaling around $1.91 billionâa sign of declining institutional demand.
4ď¸âŁ Trading position liquidations (Liquidations):
More than $1.6 billion in leveraged trading positions were liquidated within 24 hours. Most of the losses were among traders who had gone Long, which accelerated the decline.
đ What should we watch now?
đ´ A break below the $66K zone could open the way to a test of $65K, followed by even lower levels if selling pressure continues.
đ˘ Reclaiming $70K and holding above it would be the first positive sign of a potential recovery.
The crypto market is experiencing a strong downturn, with selling pressure increasing. Bitcoin has fallen to around $66,500 after dropping below $70,000 for the first time since August.
đ What are the main reasons behind this decline?
1ď¸âŁ U.S. inflation:
The latest inflation data came in higher than expected, increasing fears that the U.S. Federal Reserve (FED) could raise interest rates again in December.
2ď¸âŁ A stronger dollar:
The U.S. dollar has reached its highest levels since April 2025, adding pressure on high-risk assets like Bitcoin and other cryptocurrencies.
3ď¸âŁ Outflows from Bitcoin ETFs:
U.S. Bitcoin investment funds have recorded consecutive outflows for 7 sessions, totaling around $1.91 billionâa sign of declining institutional demand.
4ď¸âŁ Trading position liquidations (Liquidations):
More than $1.6 billion in leveraged trading positions were liquidated within 24 hours. Most of the losses were among traders who had gone Long, which accelerated the decline.
đ What should we watch now?
đ´ A break below the $66K zone could open the way to a test of $65K, followed by even lower levels if selling pressure continues.
đ˘ Reclaiming $70K and holding above it would be the first positive sign of a potential recovery.
