Why Is Crypto Down Today: What is Going on With Crypto Today
Why Crypto Market Is Down Today: What’s Behind The Crypto Crash
Crypto Market Awaits Key Events and $10 Billion Options Expiry
The cryptocurrency market is on high alert as it approaches a critical week filled with macroeconomic events and a $10 billion crypto options expiry. Recent optimism, driven by Donald Trump’s election win and Elon Musk’s strategic spending cuts, has fueled market rallies. However, investors are bracing for potential volatility ahead.
Bitcoin Fear & Greed Index Hits "Extreme Greed" at 82
The Bitcoin Fear & Greed Index has soared to "Extreme Greed," reflecting strong investor confidence with a score of 82. While this bullish sentiment highlights market optimism, it also raises concerns about a possible correction, as such high levels often precede significant price volatility. Traders are advised to exercise caution.
Bitcoin Struggles to Break $100,000 Barrier
Bitcoin (BTC) is drawing attention as it approaches the key $100,000 milestone. After reaching $99,800 on Friday, the cryptocurrency saw a slight weekend pullback and is now trading below $98,000. The psychological $100,000 level remains a critical focus for traders, signaling potential market volatility ahead.
Major Economic Events to Watch
On Tuesday, November 26, all eyes will turn to the Federal Reserve’s (Fed) FOMC meeting minutes from November 6. Market participants are keen to gain insights into the Fed's assessment of the economy, which could provide clues about future monetary policy decisions.
US PCE Inflation Data
The US PCE inflation report, scheduled for Wednesday, November 27, is expected to show annual inflation rising to 2.3%, with core inflation hitting 2.8%.
Market Expectations:
- Monthly PCE: +0.2%
- Annual PCE: 2.3%
- Core PCE Monthly Increase: +0.3%
- Core PCE Annual Increase: 2.8%
Rising inflation data could sway market sentiment across traditional and crypto markets.
US Q3 GDP Revision
The first revision of the Q3 GDP report will also be released on Wednesday. This update will provide a clearer picture of the US economy's performance and influence broader market trends, including cryptocurrency prices.
Initial Jobless Claims
Initial jobless claims data, expected the same day, will offer fresh insights into the U.S. labor market. A recent decline in the unemployment rate from 4.3% to 4.1% and stronger-than-expected claims data, such as the 213,000 reported for the week ending November 16, indicate a resilient labor market. This may ease concerns over economic weakness.
Crypto Market Prepares for $10 Billion Options Expiry
Bitcoin and Ethereum Options
On November 29, crypto options worth over $10 billion are set to expire. The max pain price for Bitcoin is $77,000, while Ethereum’s is $2,800. This significant expiry could trigger short-term volatility, despite long-term optimism within the market.
Key Market Trends: Bitcoin and Ethereum
$6 Billion Bitcoin Outflow
Bitcoin saw a massive $6 billion outflow from exchanges last week, with $3.9 billion leaving on November 19 alone, according to IntoTheBlock data. This accumulation pushed Bitcoin to a new all-time high (ATH) of $99,655 on November 23, signaling strong investor confidence.
Declining Whale Activity
Whale transactions, defined as those exceeding $100,000 in BTC, dropped significantly, with transactions falling from 32,000 to 19,500 between November 21 and 24. Additionally, transaction volumes decreased from $136.4 billion to $53.6 billion, reflecting reduced activity among large holders.
