Market pressure from US interest rate fears
Bitcoin lost around five percent at the beginning of the week, Ethereum even ten percent. The trigger is new uncertainties surrounding the US Federal Reserve. Although the Fed recently cut interest rates, the upcoming labor market data is now crucial: If they turn out strong, the Fed could delay further easing. This burdens risky assets like cryptocurrencies.
Wave of liquidations accelerates the crash
In addition to the macroeconomic environment, a technical chain reaction created additional pressure. Within just 24 hours, leveraged long positions worth more than 1.2 billion USD were automatically liquidated. These liquidations exacerbate price declines because they trigger further sales.
Mood shifts - Fear instead of "Moonvember
The Bitcoin Fear and Greed Index slides to 33 points and signals significant fear. While long-term holders reduce positions, short-term traders speculate on quick rebounds. Institutional investors remain cautious.
Long-term trend remains intact
Despite the setback, a structurally more stable market is evident. Regulatory progress and technological developments strengthen the long-term investment case. If the Fed sends a moderate signal or the US labor market weakens, a recovery could come quickly.
