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Crypto Market Crash: Bitcoin Sinks, $1T Wiped Out
21 Nov
Summary
- Bitcoin dropped to $88,522, its lowest point in seven months.
- Over $1 trillion was erased from the global crypto market valuation.
- Tighter financial conditions and weak risk sentiment are cited causes.
Bitcoin experienced a significant downturn, reaching $88,522 and marking its lowest point in seven months amidst volatile trading conditions. This sharp decline triggered a broad market sell-off, erasing over $1 trillion from the global cryptocurrency market's total valuation, which now hovers around $3.2 trillion.
The accelerated sell-off followed Bitcoin's break below crucial support levels near $92,000, which in turn caused widespread liquidations across leveraged futures positions. Experts point to a confluence of factors, including tighter financial conditions, rising Treasury yields, and expectations of delayed Federal Reserve rate cuts, as key drivers of this weakened risk appetite.
Market participants are now closely monitoring whether Bitcoin can establish support above the $88,000-$90,000 range. A failure to do so could potentially lead to further corrections, with some analysts warning of a possible descent toward $75,000, especially if global risk sentiment continues to deteriorate and liquidations escalate.
