Crypto got absolutely hammered this Tuesday, with Bitcoin dropping below $104,000 and most altcoins bleeding over 5%. Some tokens got destroyed even worse; Starknet crashed 16%, while Zcash, Internet Computer, Pump, and Filecoin all plunged over 13%.
The main reason is profit-taking after recent rallies. Look at the tokens getting hit hardest; they were all top gainers recently. Zcash exploded from $30 to over $700 in less than a month before crashing as investors booked profits. Uniswap jumped after announcing a token burn initiative. Now they’re all giving back those gains.
Liquidations are making things worse. Over $115 million in Bitcoin positions got wiped out in 24 hours, with more than 150,000 traders getting liquidated across the market. People remember October 11th, when 1.6 million traders lost over $20 billion in a single day, so they’re nervous about getting caught again.
ETF demand has completely dried up. Bitcoin ETFs only saw $1.5 million in inflows this week after bleeding $1.2 billion last week. Ethereum ETFs have had zero inflows this week after losing $504 million last week. That’s about $2 billion in combined outflows recently.
Open interest in Bitcoin futures crashed from $94 billion in October to just $68 billion now. Digital asset treasury companies have mostly stopped buying as their stock prices tanked. The crash is also following broader stock market weakness, with tech stocks like Nvidia leading declines.
Conclusion
Bitcoin fell below $104,000 as the crypto market crashed from profit-taking after rallies, $115 million in liquidations, ETF outflows totaling $2 billion, and plummeting futures open interest from $94 billion to $68 billion.
Also Read: Large Outflows Shake Crypto
