Bitcoin Dips Below $105K as Market Follows: Current State of The Crypto Market

As Bitcoin and several other crypto see notable plunge despite institutions reportedly buying more crypto, the market has once again proved that nobody really knows what will happen next.

On Monday alone, Michael Saylor's 'Strategy' bought 397 Bitcoin worth roughly $43 million at the time. Bitcoin and MARA holdings also purchased more BTC late last month totaling nearly a billion. However, even at that, the market has done the exact opposite of what many would have expected.

Price action: BTC, ETH, BNB, SOL & ASTER

Over the past weeks, Bitcoin appears stuck in a bearish loop, with the asset seeing little to no upward momentum. At the time of writing, the asset has dropped by roughly 16.2% in the past 30 days, this drop follows its recently established all-time high $126,080 recorded on October 6, according to CoinGecko.

The continuous correction from BTC has also unsurprisingly had a notable ripple effect on the overall crypto market especially on altcoins. Amidst the decline, Ethereum, the second largest crypto by market cap has a negative performance of 24% decline over the past month.

This drop has brought the asset to trade at levels below $3,500, at the time of writing, also marking a 6.5% decrease in the past day. BNB and Solana have been no different in terms of recent price performance.

Data from CoinGecko also shows a double digit drop in both assets in the past 7 days. While BNB dropped 16%, Solana saw a bigger drop of more than 20%, over the same period. Both BNB and Solana currently trade at $947.62 and $159.35, respectively.

Even ASTER, despite CZ announcing his purchase of the coin, wasn't spared in the ubiquitous downward move. While the asset initially saw a surge following CZ’s post of buying it, the increase was short-lived as momentum died down and the coin was left to follow its peers in the bearish move.

Liquidations and sentiment

Unsurprisingly, the bearishness had consequences on traders especially those with leverage. According to Coinglass, the largest single liquidation order happened on HTX with a BTC-USDT position valued at $47.87M.

Along with that, in the past 24 hours, 334,663 traders were liquidated, with the total liquidations coming in at roughly $1.37 billion. Bitcoin and Ethereum accounted for a large chunk of that billion dollar liquidation.

BTC recorded $406.95 million in liquidation while ETH liquidation sits at $356.28 million. ASTER and SOL saw liquidations of $21.30 million and $156.68, respectively.

Talking about the current market sentiment, first off, the market appears to be in extreme fear as the Crypto Fear and Greed index fell to 21.

However, CT as always seems to be divided.

While some are worried and are already bear posting, the timeline still shows people trying so hard not to despair. One analyst wrote "I think the fun is over for Bitcoin” however “ETH and alts on the other hand may make another run.”

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