With the sudden crash in the crypto market, weekly gains are starting to evaporate. In the past 24 hours, the crypto market has witnessed a massive liquidation of $289 million, an increase of 172%.
The bulls have suffered mostly in this liquidation phase, with a wipeout of $258 million. Currently, the total crypto market cap stands at $227 trillion. Compared to the seven-day peak of $2.42 trillion, the market has lost 6.32% in valuations, or nearly $150 million.
As the bearish sentiments increase, the crypto fear and greed index has dropped by 2.60%, reaching 75%. Here are the top three potential reasons behind the crypto market crash.
Will Mt.Gox Bring Back Bitcoin Supply?
In a recent transfer, the Mt. Gox exchange has switched $35 million worth of BTC. The transfer is marked to an unmarked wallet address starting with code 12cTj.
After the transfer, two more transactions occurred with off 31.78 BTC and 468.24 BTC to two unmarked addresses. This marks the first major movement for Mt. Gox in the past 30 days.
The exchange still has 44,905 Bitcoin worth nearly $3.1 billion. While the exchange is sitting on a massive crypto supply range, the possibility of a quick plunge in Bitcoin remains.
Coinbase Quarterly Earnings Shakes Wall St. Crypto Sentiment
Coinbase quarterly earnings have led to a quick shift in market sentiments. The Coinbase stock price dropped significantly as the crypto company missed profits and revenue expectations.
The Q3 earnings led to a drop of nearly 10% on Thursday to a low point of $190. However, compared to last year’s prices, from an all-time low of $33 during the FTX collapse, Coinbase has made a remarkable recovery.
The transaction revenue of Coinbase has increased by 98%, and the total revenue has increased by 78% with the help of subscriptions, stablecoins, and the Ethereum layer-2 network Base becoming key assets.
Institutional Support Declines
On October 31, Bitcoin spot ETFs reported a daily net inflow of $32.14 million, marking the lowest figure in a week. BlackRock’s IBIT ETF remained strong, recording a net inflow of $318.80 million.
In contrast, Grayscale’s GBTC and Fidelity’s FBTC experienced outflows of $31.15 million and $75.24 million, respectively. Ethereum spot ETFs also saw a slowdown, with net inflows of $13.06 million.
Will the Crypto Market Bounce Back?
Despite the short-term volatility in the crypto market, the broader expectations for Q4 and the month of November are incredibly bullish. Despite two out of the last three November being bearish, the overall average return in the November month for Bitcoin remains at 42.80%.
Furthermore, the Bitcoin halving years 2020 and 2016 have marked positive returns for Bitcoin.
Curious to know if Bitcoin will hit $100,000 in 2024? Find a technically and logically driven answer in Coinpedia’s BTC price prediction, and subscribe to us for the latest crypto updates!
