Key Takeaways
Is the crypto market officially in a bear cycle?
While Bitcoin and TOTAL crypto market are under pressure, capital is still hunting growth spots, signaling a healthy reset.
Where is investor capital flowing right now?
Investors are rotating into strong-performing assets and on-chain RWAs, highlighting selective bullish conviction in the market.
Is crypto officially in a bear market?
Top caps are breaking support, $1.85 billion liquidated on the 4th of November, and fear’s at extremes. Altogether, these signs point to capital leaving the space, with the TOTAL crypto market cap bleeding billions.
In short, market momentum has turned bearish, with investors de-risking across both spot and derivatives. And yet, there are signs this might just be a “healthy” reset, rather than a full-blown crash.
Bear market thesis strengthens as crypto traders de-risk
Bitcoin [BTC] breaking $100k reinforces a bearish setup.
Add the Altcoin Season Index sliding back to early-August levels, and it’s looking more like a full-on bear cycle. Backing this up, TOTAL2 (ex-BTC market cap) is down 9% this week, shedding roughly $240 billion.
Basically, capital isn’t flowing into “high-risk, high-reward” plays. Instead, traders are playing it safe. That keeps the bearish thesis alive, with around $470 billion exiting the crypto market this week.
Source: TradingView (TOTAL)
Notably, the derivatives market is also showing the same trend.
In less than a week since November started, nearly $4 billion has been wiped from the market, with roughly 77% coming from long positions. That means around $3.08 billion was flushed out in long squeezes.
Hence, the crypto market is signaling strong bearish momentum.
Both spot and derivatives traders are de-risking aggressively, altcoin rotation remains muted, and BTC has broken a key floor. So, in this environment, is betting short on the crypto market the logical move?
Crypto market rebalancing as capital chases winners
Looking at flows, investors are clearly chasing opportunities.
Zcash [ZEC] is leading the charge, hitting back-to-back all-time highs and averaging a 30% weekly run over the past three weeks. Bulls are regaining conviction in privacy tokens despite an overheated market.
Solana [SOL] isn’t lagging, either. Even with bearish pressure, its ETFs are pulling in $45 million daily on average, while BTC and Ethereum [ETH] ETFs keep bleeding capital, showing a clear shift in investor portfolios.
Source: Farside Investors
In short, these flows show the market is still far from a full bear cycle.
While capital isn’t rotating broadly into altcoins, investors are chasing opportunities in newer, utility-driven plays, with ZEC and SOL leading the charge. The Real World Assets (RWA) sector confirms this trend.
The sector is up 6.8%, hitting $35.83 billion ATH. That means capital is still hunting growth spots, even as the crypto market cools. In this context, the market’s still bullish, with investors repositioning rather than exiting.
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