Bitcoin led crypto lower on Tuesday, briefly sliding below $90,000 before rebounding, as fear surged and more than $806 million in leveraged bets were wiped out. Ethereum also dipped, and exchange-traded funds (ETFs) for both assets posted fresh outflows, signaling a risk-off mood.
Todays snapshot
- Bitcoin (BTC) briefly hit $89,164 on BitMEX, then bounced to around $92,600, down about 2% on the day.
- Ethereum (ETH) traded near $3,100, off roughly 1.3%.
- Among mega-caps, BNB and SOL eked out gains of about 1% while others were flat to lower.
- Sentiment: The Crypto Fear and Greed Index stayed in extreme fear for a third day.
Fear is back and profits are thin
On-chain firm Glassnode said in its weekly market update that Bitcoin is consolidating after a sharp drop, with oversold momentum hinting at early stabilization. They warned that holder profitability remains under pressure, but exhaustion signals suggest a potential local floor in the $94,000$100,000 zone.
In plain English: more coins are sitting at or near a loss compared to recent highs, which often makes traders hesitant. Oversold means prices fell fast enough that sellers may be running out of steam, at least in the short term.
Levels traders are watching
Iliya Kalchev of crypto platform Nexo said sentiment is pessimistic but technically oversold, and flagged support near $91,000$90,000, with a deeper cushion around $85,000$84,000. If those levels hold, it could steady nerves after the recent slide; if they break, volatility could pick up again.
Big movers in the top 100
Winners and losers were stark among large caps and mid caps:
- Top performers: perpetual swaps DEX Asters ASTER (+12%) and Internet Computers ICP (+9%). A DEX is a decentralized exchange, and perpetuals are futures with no expiry.
- Laggards: Zcash (ZEC, 15.8%) and Mantle (MNT, 8.7%). ZEC fell even as Zcash treasury company Cypherpunk disclosed another $18 million purchase and a goal to accumulate a significant stake in the supply.
That kind of divergence gains in a few names and steep drops in others is common when overall risk appetite fades. Buyers get selective, and liquidity tends to thin out.
Leverage gets cleared out
Derivatives traders took the brunt of the move. Over the last 24 hours, Coinglass tracked more than $806 million in liquidations: about $686 million from long positions (bets on rising prices) and nearly $120 million from shorts (bets on falling prices). By asset, BTC led with about $429 million, followed by ETH with $172 million, and SOL with $47 million.
Liquidations happen when traders borrow to amplify bets and the market moves against them. Brokers then force-close those positions, which can add extra selling pressure.
ETF flows point to risk-off
Spot Ethereum ETFs saw another $182 million in net outflows, according to SoSoValue. Spot Bitcoin ETFs shed roughly $254.5 million, leaving total net asset value around $121 billion. Persistent outflows tell us big investors are sitting on their hands or raising cash.
Macro winds arent helping
Nexos Kalchev noted the S&P 500 and Nasdaq closed below their 50-day moving averages for the first time since April, a sign momentum has cooled. Asian stocks followed the U.S. lower, with Japan lagging as long-term bond yields climbed and fiscal concerns resurfaced.
Policy is another wildcard. Fed Governor Christopher Waller said he supports another rate cut in December due to a weakening labor market, CNBC reported. Traders will parse Thursdays delayed U.S. jobs data and other catch-up reports for clues on how fast the economy is slowing.
Why this matters
- For crypto investors: Key support near $90,000 is in play. How price reacts there often sets the tone for the next few weeks.
- For ETF watchers: Outflows suggest less dip buying from traditional money. A flip back to inflows would be a strong confidence signal.
- For the broader market: Stocks losing momentum and mixed Fed signals add uncertainty, which tends to feed crypto volatility.
What to watch next
- Does BTC reclaim the mid-$90,000s quickly, or retest $85,000$84,000?
- Do ETF flows stabilize or keep bleeding?
- Does the jobs report ease recession fears enough to spark a relief rally?
As always, volatility cuts both ways. Manage risk and avoid overusing leverage.
Methodology and sources
Prices referenced are from market trackers at the time of writing. Key data points were sourced from Glassnode, CoinGecko, Coinglass, SoSoValue, and CNBC.