Why the Crypto Market Is Down Today: What's Behind the Drop

Why Is The Crypto Market Down Today: What’s Driving the Red Market

Bitcoin Fear & Greed Index Indicates "Extreme Greed" Sentiment

The current Bitcoin Fear & Greed Index stands at an "Extreme Greed" level, with a score of 90. This high score signals strong investor confidence but also indicates potential overextension in the market. Such extreme sentiment often precedes significant price swings, hinting that traders should remain cautious as a correction may be looming.

Putin's Nuclear Decree Shakes Stocks and Crypto Markets

On November 19, Russian President Vladimir Putin approved a new decree permitting Moscow to deploy nuclear weapons against non-nuclear states if they receive support from nuclear allies. According to reports, Putin stated, “Any attack by a nation within a military alliance will be viewed as an attack by the entire bloc.” Adding to geopolitical tensions, the Ukrainian armed forces launched their first strike on Russian soil using an ATACMS missile, as reported by RBC Ukraine, citing a military official. This escalation has contributed to unease in financial markets, including crypto, leading to selloffs and increased volatility.

Bitcoin On-Chain Metrics Hint at 10% Correction

Market sentiment and on-chain indicators for Bitcoin are hinting at a possible 10% price correction, which could push BTC down to the $80,000 level. This follows a period of strong market activity but comes amid caution as potential volatility looms.

Ethereum ETFs See Notable Outflows

In the three days leading up to November 18, Ethereum ETFs recorded outflows totaling $39.08 million. This substantial withdrawal indicates that the recent surge in crypto market enthusiasm might be short-lived, raising questions about the sustainability of the current momentum.

RSI Suggests Bitcoin is Overbought

Bitcoin's Relative Strength Index (RSI) has climbed past the 70-mark, indicating that BTC is in overbought territory. This often serves as an early warning of a potential price correction, suggesting that traders should prepare for possible volatility ahead.

Bitcoin Miner Selloff Could Halt $100K Rally

A wave of selloffs by Bitcoin miners following the recent price surge is underway. This movement, fueled by profit-taking due to underwhelming quarterly earnings from BTC mining companies, could impede Bitcoin's expected climb toward the $100,000 mark. Ongoing miner selloffs may further contribute to downward pressure on BTC prices.