- Bitcoin drops to $96,000 liquidations intensify amid market panic.
- Crypto market cap shrinks to $3.28T, triggering widespread fear.
- Experts say current bear market far less severe than 2022.
Bitcoin’s price plunged to $96,800 as the entire cryptocurrency market faced a significant downturn. This drop mirrored the decline seen across major asset classes, with stocks, gold, silver, and even the US dollar all retreating. The Crypto Fear & Greed Index tumbled to 22, signaling extreme fear among investors. The total market cap of the crypto sector shrank to $3.28 trillion, a 6.12% loss in just 24 hours.
Massive Liquidations Fuel Market Panic
A key factor behind the current market panic is the ongoing wave of forced liquidations. Small price drops are wiping out overleveraged traders, causing massive disruption. Bitcoin’s dip from $105K to $101K erased $500 million in positions, liquidating 144,000 traders in the process. This kind of outsized liquidation pattern is becoming more frequent, amplifying market volatility and fear.
The most significant blow came earlier in October, when a massive liquidation wave triggered $20 billion in forced selling. This event left lasting scars on the market, and analysts say the shock from that incident is still affecting investor sentiment.
Also Read: XRP Faces a Bearish Shift After Death Cross Formation
A Different Perspective on the Current Market Downturn
Despite the turmoil, some experts believe the market’s current downturn is not as dire as it may seem. Haseeb Qureshi, Managing Partner at Dragonfly Capital, offered a more optimistic view. He pointed out that this market correction is far milder than the catastrophic bear market of 2022, when major players like Luna, 3AC, FTX, and others collapsed, shaking the entire crypto ecosystem.
Qureshi emphasized that, unlike last year, the fundamentals of the market remain intact. Infrastructure is stable, liquidity is strong, and no major entities are on the verge of collapse. For him, this bear market is one of the easiest he’s seen, despite the recent declines.
Bitcoin’s Path Forward: Weak Rallies and Lower Highs?
Looking ahead, analysts are wary that Bitcoin’s price could continue to struggle. If the cryptocurrency fails to hold key support levels, any rallies may only be temporary, likely rising just enough to retest old support levels, now acting as resistance.
Timing models suggest Bitcoin is entering the typical 35-36 month period where past cycles have peaked, meaning a new all-time high in the near future is unlikely without a significant shift in market dynamics. Analysts warn that unless there’s a major influx of capital into the crypto market, Bitcoin and other cryptocurrencies may remain under pressure for the foreseeable future.
With the market feeling the weight of liquidation-driven volatility and broader uncertainty, the outlook for Bitcoin and crypto at large remains cautious.
Also Read: Peter Schiff Slams Bitcoin’s Collapse Below $100,000: Is the Crypto Bubble Finally Bursting?
