Bitcoin Went Into A Corkscrew, Losing 10% In A Day

There hasn't been a drawdown this deep since June 2022.

Bitcoin's exchange rate has fallen by 17% in the last week. In the last 24 hours alone, according to Coinmarketcap, its price has fallen by more than 10% and was down in the neighborhood of $81000. The second most popular cryptocurrency, Ether (Ethereum), also fell 10% in 24 hours and was trading at $2600. During November, the first cryptocurrency fell in price by nearly a quarter, writes The Moscow Times.

There hasn't been such a deep drawdown since June 2022, a period when the market came under pressure from a series of high-profile bankruptcies and the subsequent collapse of Sam Bankman-Fried's FTX crypto exchange. Bitcoin is now heading for its worst quarter since 2018 and possibly the first year in history that it will close negative.

The current drop in cryptocurrencies has been attributed by market participants to a sharp cooling of investor interest in risky assets, Reuters notes. The Nasdaq index has lost 7.5% since its November high. Against the background of weakened hopes for a soon reduction in the Fed rate, investors are actively reducing positions in shares of the technology sector. Yesterday, the U.S. stock market saw a sharp intraday reversal: major indices fell to their lowest level in more than two months. The Nasdaq index fell by 2.4%, the S&P 500 - by 1.6%, the market value of shares fell by $2.7 trillion.

The situation is exacerbated by record "margin calls" in the crypto market this fall. On October 10, the market has already experienced forced closure of positions worth $19 billion. Over the past 24 hours, liquidations reached another $2 billion. According to CoinGecko, over the past six weeks, the total capitalization of digital assets has decreased by about $1.2 trillion. Institutional investors are leaving crypto assets. As of November 20, net withdrawals from U.S. exchange-traded funds (ETFs) focused on cryptocurrencies amounted to $903 million. This is the second largest daily outflow since the launch of such funds in January 2024.

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