The crypto market crashed today as prices of Bitcoin, Ethereum, XRP, BNB, and Solana tumbled fast. As a result, the global market cap dropped 4% to $3.45 trillion, the lowest in five months.
The crash hit early today after weak U.S. economic data and heavy ETF outflows shook investor confidence. Moreover, over $1.5 billion in crypto trades were liquidated, leaving 329,000 traders in losses, according to Coinglass.
Meanwhile, Bitcoin slid 4% to $103,650 while Ethereum fell to $3,461, its lowest level in three months. XRP also dropped 6% to $2.25 as altcoins followed the same path.
“As BTC continues to trade within the top-buyer cluster, the market sits in a fragile state,” said Bitfinex analysts. They further warned that time is becoming a headwind for buyers unless prices recover soon.
At the same time, market fears grew as weak U.S. manufacturing data pointed to slower growth. The ISM Manufacturing PMI fell to 48.7 in October, marking eight straight months of decline.
This number shows continued weakness during the ongoing government shutdown. In addition, Federal Reserve officials also said a rate cut may not happen soon, keeping the dollar strong and crypto prices under pressure.
Furthermore, institutional investors joined the sell-off as spot Bitcoin ETFs saw $187 million in outflows. Ethereum ETFs lost $136 million, marking a fourth day of redemptions. BlackRock’s IBIT and ETHA funds led the exits, according to SoSoValue
In contrast, Solana ETFs saw $70 million in inflows, showing some traders still seeking high-risk plays. CoinShares reported $360 million in total outflows last week.
Additionally, on-chain data showed whales and long-term holders booking profits. Nearly $50 billion in Bitcoin has been sold since October.
Notably, Lookonchain reported that whale investor Owen Gunden deposited 1,289 BTC to Kraken today after selling another batch on Monday. Analysts said the selling wave from whales added pressure on prices.
Consequently, the Crypto Fear & Greed Index fell sharply from 42 to 21, showing extreme fear. “There’s been a lot of fear in the market since the large liquidation that happened,” Nansen analyst Nicolai Sondergaard said. He added that traders have gone risk-off because of the shutdown and falling liquidity.
That said, Bitfinex analysts warned the retest could push Bitcoin toward $100,000 unless new buyers step in.
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