Why Crypto Market Is Down: What’s Causing the Red Day?

Why Is Crypto Down Today: Top Reasons Behind Today’s Bearish Trend

Cryptocurrency Market Sees Weekend Volatility Spike

The cryptocurrency market faced a significant surge in volatility over the weekend, with all the top ten largest cryptocurrencies by market capitalization trading in the red.

Market Cap Drops Despite Recovery Signs

Although signs of recovery have emerged, the total market capitalization remains down by 2.92% over the past 24 hours, settling at $3.25 trillion at press time.

$518 Million Liquidated in 24 Hours

According to data from Coinglass, the crypto market experienced massive liquidations, with over $518.64 million wiped out in just 24 hours. This impacted more than 159,539 traders globally.

Leveraged Long Positions Take the Biggest Hit

Traders holding leveraged long positions faced the most substantial losses, with over $389.30 million being liquidated. Bitcoin was notably affected, recording $33.28 million in liquidations—the highest single-day long liquidations on BTC in over a week.

Market Sentiment Remains Bullish Despite Correction

Despite the recent market pullback, overall sentiment remains optimistic. The Fear and Greed Index currently stands at 79, reflecting a state of "extreme greed." 

This high level of confidence among traders signals strong optimism, but it also raises caution. Historically, such extreme readings can indicate the potential for a trend reversal or a market correction. Traders should remain vigilant for signs of profit-taking, as it could trigger further declines in market prices.

Pump Fun Suspends Live Streaming Amid Misuse Concerns

Solana-based memecoin launchpad Pump Fun has indefinitely suspended its live streaming feature following reports of misuse. The platform emphasized that this is a temporary measure aimed at addressing the issues, not a permanent removal of the feature. 

Significant Outflows in Bitcoin ETFs as Prices Decline

U.S. Bitcoin ETFs experienced substantial outflows on Monday, coinciding with Bitcoin's dip below $93,000. Collectively, the eleven spot Bitcoin ETFs recorded net outflows of $435 million. Notably, BlackRock's iShares Bitcoin Trust (IBIT) and Grayscale's Bitcoin Mini Trust (BTC) were exceptions, attracting inflows during this period. 

Investors Brace for Upcoming Economic Indicators

The cryptocurrency market is poised for a pivotal week with the upcoming release of key economic indicators, including the U.S. Personal Consumption Expenditures (PCE) inflation data, Federal Open Market Committee (FOMC) minutes, and Q3 Gross Domestic Product (GDP) figures. Investors are closely monitoring these events to assess their potential impact on asset prices. 

Bitcoin's Rally Faces Potential Correction Amid $100,000 Resistance

Bitcoin's recent surge is encountering significant resistance at the $100,000 mark, prompting concerns about a possible downturn. A leading trader has cautioned that if Bitcoin fails to surpass this critical threshold, it could experience a correction, potentially declining to as low as $85,600 in a worst-case scenario. This warning comes as the cryptocurrency's momentum appears to be waning after approaching the $100,000 milestone.