- Bitcoin drops below $90,000 for the first time since November 2024, valued at $87,804
- Crypto market faces over $1.5 billion in liquidations, driven by investor risk aversion
- Fear and Greed Index hits 29, indicating a highly fearful sentiment among investors
The crypto market experienced significant losses over the last couple of days. This massive downward movement led Bitcoin to lose up to 8% of its value, while altcoins like Ethereum and XRP also suffered significant losses.
This crash pushed BTC below the $90,000 margin for the first time since November 9, 2024. As of right now, the asset is valued at $87,804 per coin, down 6.33% over the last 24 hours.
Given the fact that the current regulatory space in the U.S. can be seen as favorable for digital assets, the most significant dip in 2025 so far has caught investors by surprise.
Massive Liquidity Drop
The most recent attack on the cryptocurrency exchange Bybit has led investors to become more risk averse—leading many of them to withdraw their cryptocurrencies from circulation. According to CoinGlass, the entire market saw liquidations of over $1.5 billion over the last 24 hours.
Moreover, the ‘Fear and Greed Index’, a.k.a. the tool that measures the prevailing sentiment in the cryptocurrency market confirms the suspicion that investors are extremely risk-averse. According to CoinMarketCap, the index recently hit 29 points, indicating a massive fearful sentiment among investors. Also, this was the lowest Fear and Greed score since September 6th of the last year.
In conclusion, despite the recent market downturn and substantial liquidations, there is potential for a significant liquidity influx with the news of a strategic Bitcoin reserve. This development could attract renewed interest and institutional investments, possibly stabilizing the market and boosting investor confidence.
The information provided in this article is for informational and educational purposes only and does not constitute financial, investment, or trading advice. Any actions you take based on the information provided are solely at your own risk. We are not responsible for any financial losses, damages, or consequences resulting from your use of this content. Always conduct your own research and consult a qualified financial advisor before making any investment decisions. Read more
