Bitcoin's plunge below $100,000 sent the entire cryptocurrency market into turmoil. Bitcoin's weakness quickly spread across the broader market.
Bitcoin plummets, causing the entire cryptocurrency market to plummet (Photo: Decrypt).
According to CoinDesk, a series of major tokens such as Ethereum (ETH) fell 12% to below $3,200, Solana (SOL) also lost up to 15% in the same period.
According to Alternative ’s cryptocurrency market sentiment tracker, the Fear and Greed Index dropped sharply to 10 points on November 10 and November 11.
In the cryptocurrency space, the Fear and Greed Index is a measure of investor sentiment. The scale ranges from 0 to 100, with 0 being “extreme fear” and 100 being “extreme greed.” This is the lowest the fear index has been in a year.
According to Bitfinex experts, the recent sharp decline in the market mainly stems from the lack of clarity on key US economic conditions and monetary policy direction.
This “information blackout” stems from the US government shutdown that lasted from October 1 to November 13, which caused reports on inflation and the labor market to stagnate.
In that context, experts say the market is forced to adjust due to a lack of guiding information, plus political instability making investors more cautious.
Cryptocurrency investors are in a state of panic (Photo: CNBC).
Noelle Acheson, author of Crypto Is Macro Now, said the recent price drop was a necessary correction after months of sideways market and the inability to sustain a breakout above $120,000. According to Acheson, the decisive factor for Bitcoin is still macro liquidity.
The sharp decline in Bitcoin and the entire cryptocurrency market has led many to believe that the market is at the end of its four-year cycle.
According to this view, every four years Bitcoin and the cryptocurrency market will have a strong price increase, then enter a period of decline. This period is called "crypto winter" when the market is gloomy, prices fall sharply and most investors will leave the market.
Source: https://dantri.com.vn/cong-nghe/bitcoin-giam-sau-nha-dau-tu-hoang-loan-cuc-do-20251116233537581.htm
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