The crypto market fell 3% to $1.27 trillion in the last 24 hours, with total trading volume declining more than 20%. The selloff follows a much-awaited crypto market recovery amid spot Bitcoin ETF speculations, the U.S. Fed’s two consecutive interest rates “pause” and Chair Jerome Powell’s dovish speech, easing macro and geopolitical impacts; and renewed buying by institutional investors.
The crypto market’s fear and greed index has slipped from 72 to 65 in the past 24 hours. However, the overall sentiment remains bullish.
Crypto Market Fall After Weeks of Recovery
Traders decided to book profits as a result of Friday’s expiry. As per Deribit data, 42,000 BTC options, with a notional value of $1.46 billion, are set to expire with a put call ratio of 0.58. The max pain point is $30,000. In addition, 220,000 ETH options with a notional value of $390 million, are set to expire. Put call ratio is 0.55 and max pain is $1700.
Coinglass data shows indicate massive liquidation of over $150 million in the last two days. More than 52k traders were liquidated in the last 24 hours, with the largest single liquidation order on BitMEX’s XBTUSD worth $2 million. As a result of the selloff, the broader crypto market is in “red” today.
Meanwhile, digital asset investment products saw inflows of $326 million last week, the largest single-week influx since July 2022. Along with institutional Bitcoin buying amid Bitcoin ETF hype, Solana recorded its largest week of inflows of $24 million since March 2022.
EY’s global blockchain leader Paul Brody said family offices have shown interest in investing in cryptocurrencies. Institutional funds and other big institutions are awaiting Bitcoin ETF approval by the SEC.
Hints of Upcoming Profit Booking
Pointing out two significant on-chain developments after the recent Bitcoin price rally, CryptoQuant research head Julio Monero recently said the rally may pause. The profit booking was expected after a massive “uptober” rally.
Moreover, Popular analyst Ali Martinez in a post on X shared that the TD Sequential indicator presents a sell signal for Cardano (ADA), Shiba Inu (SHIB), Dogecoin (DOGE), and Injective (INJ). Cardano (ADA), Shiba Inu (SHIB), Dogecoin (DOGE), and Injective (INJ) rallied last month during the crypto market recovery.
However, the market sentiment remains positive for continued upside after rejection. Matrixport predicts Bitcoin at $45K in 2023 and $125K by 2024-end. In addition, as Bitcoin price officially formed a “Golden Cross” and macro factors ease, BitMEX co-founder Arthur Hayes recommends buying Bitcoin.
BTC price fell 3% in the last 24 hours, with the price currently trading near $34,300. The 24-hour low and high are $34,358 and $35,458, respectively. Moreover, trading volume has decreased by 25% in the last 24 hours.
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