Since its last all-time high, Bitcoin has been unable to break free—on a sustained basis—from the pull of the symbolic $100,000 level. This situation has triggered new massive liquidations, even as some long-established cryptocurrencies are surging.
Crypto investors plunge into “extreme fear”
Just one month ago, Bitcoin hit a new all-time high of $126,000. That record would foreshadow the market’s collapse a few days later, with liquidations totaling more than $20 billion.
Since then, the cryptocurrency market has been trying to recover, without much success. Except perhaps for certain established tokens like Zcash (ZEC), driven by the unlikely enthusiasm of those who see it as a quantum alternative to BTC.
And the situation doesn’t seem likely to improve anytime soon, given the latest market decline that triggered $1.37 billion in liquidations over the past 24 hours. This has caused the Fear & Greed Index to show “extreme fear” among investors, who are weary of the market’s lackluster performance.
Crypto investors are shifting into ‘extreme fear’
The U.S. spot Bitcoin ETF market is in the red
At the same time, BTC is posting one of its worst October performances since 2014, with a decline of nearly 4% at the month’s close.
This situation is directly impacting the U.S. spot Bitcoin ETF market, with four consecutive days of net outflows totaling more than $1.3 billion.
The spot Bitcoin ETF market is seeing significant outflows
Only Solana is bucking the trend, with more than $260 million in net inflows recorded since the launch of Bitwise’s BSOL fund on October 28, and $65.2 million on November 3 alone.
Notably, the stock market clearly benefited from a genuine “Uptober” effect, reaching “a record $148,000 billion in market capitalization.” However, this rise was overwhelmingly driven by the performance of the seven major U.S. tech giants (the “Magnificent 7”), whose market share in 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 landscape, yet some cryptocurrencies are still managing to stand out. 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 wild surges of old, abandoned “shitcoins.” Seeing things like DCR or DASH skyrocket is really just end-of-cycle nonsense.
Adam Cochran
The ‘crazy surges in old, abandoned shitcoins’ mentioned by Adam Cochran
Because while ZEC has posted a 200% gain over the last 30 days, DASH has soared 300% over the same period and DCR has risen 200% over the last 7 days. This trend also extends to BAT and ZEN, with gains of 30% and 70%, respectively, over the last 7 days.
At the time of writing, the BTC price is once again testing support around $103,000. A confirmed break below this level on the daily chart could quickly push it below the symbolic $100,000 threshold. The situation is similar for the rest of the crypto market, with TOTAL2 hovering unsteadily around the $1,340 billion mark.
