Bitcoin (BTC), the leader of the cryptocurrency market, is back on the agenda, experiencing a pullback of approximately 1.8% in the last hour.
At the time of writing, the price is trading at $88,793. This rapid decline has once again highlighted the increasing selling pressure and liquidity fluctuations in the market.
Two key factors are driving the decline: continued outflows from Bitcoin ETFs and the growing likelihood that the Fed will not cut interest rates in December.
Spot Bitcoin ETFs have seen outflows of hundreds of millions of dollars in recent days. These movements, particularly from large funds, reflect weakening institutional risk appetite. ETF outflows increase Bitcoin flows directly to exchanges, putting additional pressure on the price.
Meanwhile, the prospect of a December Fed rate cut has rapidly diminished. Most recently, Morgan Stanley announced that it anticipates the Fed will not cut interest rates in December. This outlook is fueling a sell-off in high-risk assets like Bitcoin, which are sensitive to interest rates.
The market decline wasn’t limited to Bitcoin. Ethereum (ETH) fell 2.17%, XRP 2.45%, and Solana (SOL) 2.74%. Total liquidations reached $695 million in the last 24 hours, $493 million of which were long positions. Liquidations in the last hour alone reached $107 million.
This sharp sell-off has also rapidly depressed investor sentiment. The Crypto Fear and Greed Index is currently in the “Extreme Fear” zone at 15 points. This level indicates periods of intense panic selling in the market.
*This is not investment advice.