Since its last historic high, Bitcoin has been unable to break free from the pull of the symbolic $100,000 level. This situation has led to further massive sell-offs, while some historic cryptocurrencies are skyrocketing.
Crypto investors switch to “extreme fear”
Just one month ago, Bitcoin reached a new all-time high of $126,000. This record was followed by a market crash a few days later, with liquidations exceeding $20 billion.
Since then, the cryptocurrency market has been trying to recover, without much success. Except perhaps for some long-standing tokens such as Zcash (ZEC), buoyed by the unlikely enthusiasm of those who see it as a quantum alternative to BTC.
And the situation does not seem likely to improve anytime soon, considering the latest market decline that has led to $1.37 billion in liquidations over the past 24 hours. This has prompted the Fear & Greed Index to show “extreme fear” among investors, who are weary of the market’s poor performance.
The US spot Bitcoin ETF market is in the red
At the same time, BTC posted one of its worst performances in history since 2014 for the month of October, falling nearly 4% at the end of the month.
This situation is having a direct impact on the US spot Bitcoin ETF market, with four consecutive days of net outflows totaling more than $1.3 billion.
Only Solana is doing well, with more than $260 million in net inflows since the launch of Bitwise’s BSOL fund on October 28, and $65.2 million on November 3 alone.
Notably, the stock market has clearly benefited from a real Uptober effect, reaching “a record $148 trillion in market capitalization.” However, this rise was largely dominated by the performance of the seven major American tech giants (the Magnificent 7), whose market share on the S&P 500 has risen from 12.3% in 2015 to 36.6% today.
“Crazy surges in old, abandoned shitcoins”
It’s a complicated context, but some cryptocurrencies are still managing to do well. Indeed, Zcash’s counter-trend rise seems to be inspiring others in what analyst Adam Cochran sums up as “crazy surges in old, abandoned shitcoins.”
The most worrying thing is the crazy surges of old, abandoned “shitcoins.” Seeing things like DCR or DASH explode is really just end-of-cycle nonsense.
Adam Cochran
While ZEC has risen 200% over the last 30 days, DASH has soared 300% over the same period and DCR has risen 200% over the last 7 days. This situation also involves BAT and ZEN, with respective increases of 30% and 70% over the last 7 days.
At the time of writing, the BTC price is once again testing the support level of around $103,000. A confirmed break in the daily time frame could quickly propel it below the symbolic threshold of $100,000. The situation is the same for the rest of the crypto market, with TOTAL2 in an unstable position at around $1.34 trillion.
