Bitcoin Falls Below $95K as Crypto Markets Suffer Sharp Decline

Cryptocurrency Market Faces Sharp Decline as Bitcoin Falls Below $95,000 Amid Extreme Fear and High Volatility

  • Bitcoin dropped below $95,000 amid a broad market decline.
  • Major cryptocurrencies such as Ethereum and Solana fell more than 10%.
  • A $867 million outflow occurred from Bitcoin ETFs, the largest since February.
  • Crypto stocks and derivative open interests faced significant losses.
  • Market sentiment remains in extreme fear, with ongoing price volatility.

The cryptocurrency market experienced a sharp downturn as Bitcoin slipped below $95,000, marking the third time this month it has fallen under $100,000. This movement dragged the entire crypto-equities sector lower during U.S. trading, coinciding with a 1.5% decline in the Nasdaq Index followed by a similar drop in premarket.

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Other major digital assets also saw significant decreases: Ethereum dropped 12% to $3,100, and Solana fell 13% to $136. The decline was accompanied by $867 million in Bitcoin ETF outflows, the highest since February 25. Publicly traded crypto companies such as MicroStrategy (-7%), Coinbase (-7%), and Robinhood (-9%) faced sharp stock price reductions.

Derivatives markets continue to feel the impact of recent liquidations. According to Bybit’s derivatives team, futures and perpetual swaps have yet to regain the approximately $19 billion in open interest lost in October’s liquidation event. Recovery is estimated to potentially take two quarters.

Market sentiment remains fragile, with the Crypto Fear & Greed Index still in Extreme Fear territory, reflecting investor caution not typically seen since 2022. Despite this, some underlying factors supporting Bitcoin and broader crypto interest persist, including approaching monetary easing cycles, ongoing institutional adoption, and increasing regulatory clarity in the United States.

In related developments, memecoin leaders such as Dogecoin (-10%), Shiba Inu (-8%), and PEPE (-13%) also declined. Onchain metrics for projects like WOJAK (+50%) and RACER (+1800%) showed gains specifically on Solana.

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NFT markets were similarly depressed alongside crypto majors. Blue-chip collections like CryptoPunks (-5% at 33 ETH), Pudgy Penguins (-6% at 5.5 ETH), and Bored Ape Yacht Club (-2% at 6.3 ETH) all declined. New movers included Quine (+37%). Meanwhile, Magic Eden announced plans for buybacks of its $ME token and NFTs using 30% of its secondary marketplace revenue, as noted in their public statement on Twitter.

Overall, a difficult week continues for crypto assets, stocks, and derivatives amid high volatility and cautious investor sentiment.

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