Crypto market collapses: Bitcoin and Ethereum in free fall!

Crypto market collapses: Bitcoin and Ethereum in free fall!

Over the last four days, cryptocurrencies have seen a significant decline of 5.6%, resulting in a total loss of $230 billion in market capitalization. Bitcoin, the leading cryptocurrency, fell from $117,000 to $112,000. Ethereum and Solana also suffered significant losses, reflecting uncertainty among investors. The price movements have increased caution ahead of the upcoming “Uptober,” a historically strong month for Bitcoin.

The recent sell-off is partly attributed to profit-taking following previous price rallies. In just 24 hours, more than $1.7 billion in leveraged positions were liquidated. Other factors contributing to the price situation include the Federal Reserve's current actions and negative market signals. The day before, the Federal Reserve cut interest rates by 25 basis points to 4.00%-4.25%, which briefly boosted markets. However, these trends failed to sustain while Fed Chairman Jerome Powell suggested further rate cuts were not guaranteed, further depressing market sentiment.

Current market conditions

In the midst of the difficult conditions, the entire crypto market capitalization fell by almost 4%in the past 24 hours, which corresponds to a decline of around $ 158 billion. Bitcoin started the day with a course of over $ 115,000, but had to give in to $ 112,000, which corresponds to a decline of 2.31% at the time of the report. Ethereum has lost about 6% in the last 24 hours and has fallen by about 10% for a week and is now around $ 4,200. Solana fell by more than 7% to about $ 222 after the course had previously increased over $ 250. Other old coins, such as XRP and ADA, recorded similar losses of about 5% to 6%.

Market psychology and outlook

The Bitcoin Fear & Greed Index fell from 49 to 45, which indicates an increasing caution among the dealers. Despite the current declines, October has historically brought strong returns for Bitcoin in the past five years, with an average increase in the double -digit percentage range. Market observers agree that if the macroeconomic conditions stabilize and investors' willingness to take risks increased, capital could possibly flow back into the market.

In addition, on-chain data show that funds continue to flow from the stock exchanges, which indicates that long-term owners do not sell their assets. These trends could influence the potential comeback of the cryptoma markets in the coming weeks. However, the ongoing uncertainty could continue to put pressure on prices while the traders closely observe the situation.

For a detailed analysis and current developments, take a look at the comprehensive Report by Crypto News.