The crypto market is on a downtrend, weighed down by macroeconomic uncertainty and cautious investor sentiment.
Summary
- Crypto prices today saw mild declines as the Fear & Greed Index fell to extreme fear.
- Weak U.S. jobs data and fiscal concerns weighed on investor confidence.
- Fed caution has strengthened the dollar and reduced demand for risky assets.
The total cryptocurrency market value fell by 2.6% to $3.55 trillion. Bitcoin dropped 2.3% to $103,167, Ethereum slid 4.3% to $3,442, XRP declined 4.9% to $2.39, and BNB lost 3.9% to $959. CoinGlass data showed $470 million in liquidations over 24 hours, up 44% from the previous day, while open interest across crypto futures dropped 1,2% to $142 billion.
The Crypto Fear & Greed Index showed a change from fear to extreme fear, dropping two points to 24. With an average relative strength index of 46, the market may continue to consolidate before making its next significant move.
Why crypto prices today are down
Both political and economic factors contributed to the latest price decline. Concerns over an economic slowdown were rekindled by weak U.S. jobs data, which included slower growth in private payrolls. Even as the government shutdown nears an end, investor sentiment is still impacted by worries about fiscal stability and weak GDP projections.
Real yields have also increased as a result of the Fed’s cautious approach to interest rate cuts, which has strengthened the dollar and decreased demand for high-risk assets like cryptocurrency.
Renewed tariff proposals from President Trump, including a potential “tariff dividend,” have also stirred inflation concerns and memories of October’s “Black Friday” crash, when leveraged positions were heavily liquidated.
Market outlook and analyst sentiment
Analysts view the pullback as a pause rather than a reversal. Institutions such as Coinbase and Sygnum expect the market to stabilize once liquidity improves in December.
They point to the $100,000 as the primary short-term support level for Bitcoin, with a slight recovery possible if inflation data and ETF inflows improve.
Although most see this decline as a temporary response to macro uncertainty, volatility is still expected around the upcoming Fed meeting and trade policy updates. Traders are currently keeping an eye on whether Bitcoin can maintain its current range and gain momentum.
