Why Is the Global Crypto Market Down Today?

Crypto Market Slumps, Nearing $3T Support

The total crypto market capitalization has plummeted by $82 billion, hovering near the crucial $3 trillion support level. SAND, a metaverse token, led the decline in altcoins, losing 18% in 24 hours.

Market Oversold, Risks Breaching Support

The MACD indicator signals an increase in selling pressure, suggesting that the market is oversold and at risk of breaching the $3 trillion support. If selling continues, the market could drop further to $2.72 trillion.

Weekend Trading Contributes to Volatility

Low trading volumes over the weekend have amplified price fluctuations. The movement of over 74,000 BTC to spot exchanges indicates profit-taking activity, adding to the downward pressure on prices.

Metaverse Token SAND Plunges

SAND has been the biggest loser in the market, dropping 18%. It currently trades at $0.66, a 23% decline from its recent high.

Institutional Sentiment Varies

Bitcoin ETFs have recorded a $438 million net outflow, indicating investor uncertainty. However, BlackRock's IBIT has seen a $267 million inflow, while Bitwise BTC has experienced a $280 million outflow.

Options Expiry Impacts Market

Options expiries worth billions of dollars are set to expire on November 29, further driving volatility as traders adjust their positions.

Some Tokens Gain Amid Turmoil

Despite the downturn, some tokens have gained ground. Lido DAO, Uniswap, and Arbitrum have risen significantly, highlighting investor interest in decentralized finance (DeFi).

Market Sentiment Remains Bullish

Despite the recent setbacks, market sentiment remains "extremely greedy" according to the Fear and Greed Index. Traders are navigating the volatility, highlighting the challenges of reaching major price milestones like $100K for Bitcoin.