The total crypto market cap slipped below $3 trillion on Nov. 20 as the digital assets market continued to reel.
As per onchain analytics firm CoinGlass, more than 215,000 crypto traders have been liquidated and over $820 million has been wiped out from the market.
The largest single liquidation order of $30.91 million in Bitcoin (BTC) happened on the HTX crypto exchange.
Bitcoin slipped 2.72% in the last 24 hours to trade at $86,590, Ethereum (ETH) fell 2.24% to $2,819, and XRP 2.37% to $1.99.
Why is crypto market crashing?
It all began on Oct. 10 when President Donald Trump whipped up public sentiment by threatening to impose a 100% tariff on imports from China.
The statement led to a state of panic and over $19 billion got wiped out in a day. Despite multiple attempts, the market has failed to recover so far.
Worse, the lack of the latest October Jabs data has left the Federal Reserve in a state of uncertainty when the central bank takes a call next month on whether to lower interest rates or not.
The crypto market also doesn’t appreciate policy uncertainty and since there doesn’t seem to be a possibility of another rate cut this year, no recovery appears in sight.
The crypto fear and greed index has dropped to 15, indicating “extreme fear” among traders.
Similar to Bitcoin’s volatility, even the sentiment of the crypto traders has been wild.
As per the on-chain intelligence platform Santiment, there are some traders who are optimistic about dip buying and others are going through a gloomy mood, with very little “in between.”
Bloomberg’s Mike McGlone warned that the worse is yet to come and said BTC could even crash all the way to $10,000.
Billionaires react to Bitcoin crash
Paolo Ardoino, the billionaire CEO of the leading stablecoin company Tether, thinks it’s “Bitcoin black friday.”
Billionaire hedge fund legend Ray Dalio has expressed concern about Bitcoin’s long-term vulnerabilities, though he admitted to allocating 1% of his portfolio to the leading cryptocurrency.
Due to its transparency, Bitcoin can be tracked and this is why no country will adopt it as a reserve currency, he said on CNBC’s Squawk Box.
He didn’t rule out the threat posed by quantum computing to the asset.