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The cryptocurrency market has experienced a significant downturn, losing a staggering $54 billion in the last 24 hours. The total market cap now sits at $3.07 trillion, falling below the critical support level of $3.10 trillion. The Cryptocurrency Fear and Greed Index has also dropped, now at 35 indicating fear in the market. But what’s driving this market drop?
Bitcoin ETF Outflow Continue
One of the main factors contributing to the market’s decline is the continued outflow from Bitcoin ETFs. On February 10, Bitcoin ETFs saw an outflow of $186 million, with Fidelity, Grayscale, and Invesco leading the way.
This trend continued on February 11, with an additional $56.7 million exiting Bitcoin ETFs, causing uncertainty in the market.
Liquidations Add More Pressure
Adding pressure to the ongoing market fall, liquidations have increased, especially among long traders. In the last 24 hours, $224 million worth of crypto positions were liquidated, including $174 million from long positions.
The largest single liquidation took place on the Bybit exchange, where a BTC/USDT position worth $1.97 million was closed. This influx of liquidations has exacerbated the decline, as many traders are forced out of their positions.
Altcoins Also Took The Heat
It’s not just Bitcoin facing losses. Altcoins have been significantly affected, with the altcoin market losing a staggering $234 billion in just two weeks. Ethereum (ETH), XRP, and Solana (SOL) have seen drops between 5% and 8%, while meme coins like DOGE, SHIB, and PEPE have lost between 5% and 10%.
The altcoin market’s struggles are making the broader market downturn even more pronounced.
Bitcoin’s Struggle for Support
Bitcoin, the largest and most influential cryptocurrency, has seen its price drop by more than 3%, now trading around $95,969. The $90,000 level is proving to be a key support point. If Bitcoin fails to hold above this, it could slide further to $93,625.
On the flip side, if Bitcoin regains its bullishness and moves above $103,000, it could find renewed bullish momentum.