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Crypto prices fell sharply today in light of reduced expectations of a December Federal Reserve rate cut.
Accelerating the market weakness was long-position liquidations worth $389.39 million and massive ETF outflows.
Bitcoin's correlation with the Nasdaq has reached a three-year high, making crypto more sensitive to global risk sentiment.
Crypto prices today are in the deep red zone as the market extends its bearish slide amid fading hopes for a December Federal Reserve rate cut. Growing liquidations, rising ETF outflows, and a sharp increase in Bitcoin’s correlation with the Nasdaq have added to the pressure. These cues have left major cryptocurrencies struggling to find support in today’s risk-off global environment at press time.
Here’s what happened in the crypto market today, based on CoinMarketCap’s data.
Bitcoin price is down 1% to change hands at $94,931, while the broader market remains without support due to declining rate cut expectations and institutional outflows. Taking the lead among the top cryptocurrencies is Bitcoin, with a market capitalization of $1.89 trillion despite the recent pullback. Over the last 24 hours, the flagship cryptocurrency has changed hands as much as $75.9 billion in trading volume, signaling continued investor appetite during the downturn.
Ethereum price fell 0.72% to $3,177, with its market cap standing at $383.5 billion. The second-largest cryptocurrency recorded $33.2 billion in daily trading volume, though open interest data shows leveraged positions have been cut in half as traders exit risky bets.
XRP was relatively strong, down only 0.07% to $2.24, maintaining the fourth-largest cryptocurrency at a $135.3 billion market capitalization. The token saw a volume of $4.28 billion in 24 hours.
Solana had a price drop of 1% at $140.21, retaining the sixth position with a $77.7 billion valuation. SOL also saw robust trading activity with $5.05 billion in daily volume, the highest among the top ten cryptocurrencies relative to its market cap.
Other major tokens also slid lower. BNB lost 1.03% to $932.74, while Dogecoin sank 1.14% to $0.1611. Cardano suffered the largest loss among the top ten, tanking 2.30% to $0.4918. Stablecoins Tether and USD Coin held their pegs close to $1.
According to CoinSwitch Markets Desk, “BTC, after a period of consolidation, dropped below $100K but has since seen a partial recovery and stabilized in the $94,000-$95,000 range. The pullback was driven by long-term holders taking profits, slower ETF inflows, and temporary macro uncertainty. With the US shutdown delaying key economic data and uncertainty around rate cuts, investors remain cautious.
The research team further added, “BTC is holding firm above the $93,000 support zone while facing near-term resistance at $95,000 and a stronger ceiling at $96,000-$96,500. Until a clear macro catalyst or fresh institutional flows emerge, Bitcoin may continue moving sideways. Traders should manage risk and wait for confirmed signals before taking new positions.”
Also Read: Could XRP Be Facing a Death Cross Soon?
A mix of shrinking Federal Reserve rate cut expectations and accelerating deleveraging across the market. For a December Fed rate cut, market pricing has fallen to about 40%, from more than 60% just a week ago, keeping investors away from higher-risk assets such as cryptocurrencies.
Crypto prices today had additional pressure from heavy liquidations. In the last 12 hours, total liquidations stood at $389.39 million, of which $283.40 million came from long positions. During the four-hour window, the liquidation stood at $76.11 million, of which $67.04 million were short positions.
Traditional markets added to the cautious feeling: Germany's DAX lost 1.39%, the FTSE 100 retreated 1.05%, while Japan's Nikkei 225 dived 1.77%. This risk-off feeling crossed the global markets, making cryptocurrencies very susceptible to the pressure.
The 30-day correlation between Bitcoin and the Nasdaq 100 jumped to about 0.80, the highest in three years. That tight relationship suggests Bitcoin increasingly moves like a leveraged tech stock, making it more sensitive to broader equity market sentiment.
US-listed spot Bitcoin ETFs posted $1.11 billion in net outflows from November 10-14, the third consecutive week of withdrawals. For spot Ethereum ETFs, exits were more dramatic: $729 million for the week, the third-largest outflow on record. In fact, for this week, all nine Ethereum ETFs registered zero net inflows. In contrast, spot Solana ETFs continued attracting capital with inflows of $46.34 million, extending their positive streak to three weeks.
Analysis by Matrixport suggests that leveraged positions in Bitcoin and Ethereum are rapidly getting unwound. Ethereum's open interest has crashed by 50%, showing a quick exit of leveraged capital. Bitcoin is now hovering near the crucial $93,000 support level with weakening liquidity.
While the crowded long futures from Q4 have been mostly flushed out, Matrixport says the concentrated ETF holdings remain the key risk factor. Further market weakness could lead to additional outflows and fresh liquidity stress.
Michael Saylor's Strategy has fallen close to parity with its Bitcoin holdings, now no longer the poster child of corporate Bitcoin buying. This marks a sharp change from earlier this year, when investors paid a significant premium for the company's high-conviction crypto strategy.
According to reports out of Japan, the Financial Services Agency is mulling regulations that would classify cryptocurrencies as financial products with restrictions on insider trading. The proposed changes would include a tax cut to a flat 20% and new disclosure requirements for 105 listed tokens.
The only sectors posting gains, minimal at that, were PayFi and CeFi, up nearly 1%, buoyed by strong moves in Telcoin, Nano, Aster, and OKB. Most other sectors including DeFi, meme coins, and Layer 2 tokens continued to weaken, though select projects, such as Starknet and Pendle, bucked the trend.
Also Read: Does the Biggest Bitcoin Holder Decide Market Direction?
Crypto prices today reflect a market in transition as institutional flows dry up and leverage unwinds. The Bitcoin crash has erased more than 30% of gains for the coin since hitting all-time highs just over a month ago. Renewed institutional conviction will determine whether current levels form a base or lead to another leg lower. Investors should keep a close eye on macroeconomic developments.
1. Why is the crypto market down today?
The crypto market is in the red today, mostly because of reduced expectations for a December Federal Reserve rate cut. This makes investors less willing to hold onto risk assets. Coupled with heavy liquidations and declining ETF inflows, the pressure has driven major cryptocurrencies lower across the board.
2. Why did Bitcoin drop even though trading volume is high?
High volume during a decline often indicates panic selling or forced liquidations, rather than healthy buying activity. Bitcoin’s drop is linked to leveraged positions being unwound, ETF outflows increasing, and weakening global risk sentiment, leading to significant downward pressure despite strong trading volumes.
3. Are Ethereum prices falling for the same reasons as Bitcoin?
Yes, Ethereum does bear similar macroeconomic pressures, including reduced risk appetite and lowered rate-cut expectations. Furthermore, Ethereum ETF outflows and a steep 50% drop in open interest indicate that leveraged traders are exiting, a development that intensifies downward price movement, regardless of Bitcoin's status.
4. Are stablecoins affected by today's market drop?
Stablecoins, such as USDT and USDC, are pegged to the dollar and are not directly affected by price fluctuations. However, trading volumes and demand for stablecoins often rise during market downturns, as investors move temporarily into safer digital assets to avoid volatility
5. Will the crypto market recover soon?
Recovery will depend on various factors: whether institutional flows return, whether ETF outflows slow down, and how macroeconomic indicators evolve. If risk appetite improves with easing liquidation pressures, then the market may stabilize, but near-term uncertainty remains high.
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