Why is the Crypto market down today? Main reasons behind market failure
Weekly gains in the crypto market crash have begun to evaporate. In the last 24 hours, the crypto market has seen a massive liquidation of $289 million, an increase of 172%.
The bulls were mostly hurt this liquidation phase, spending $258 million. Currently, the total value of the crypto market has reached 227 trillion dollars. Compared to a seven-day high of $2.42 trillion, the market lost 6.32 percent, or nearly $150 million, on valuations.
As the feelings of depression increased, the crypto fear and greed index decreased by 2.60%, reaching 75%. Here are the top three main reasons behind the crypto market crash.
Will Mt.Gox Restore Bitcoin Supply?
In a recent transfer, the Mt. Gox exchange changed the value of BTC by 35 million dollars. The transfer is marked with code 12cTj to an unknown wallet address.
After the transfer, two more transactions took place of 31.78 BTC and 468.24 BTC to two unknown addresses. Gox marks the first major move in the past 30 days.
The exchange still has 44,905 bitcoins worth $3.1 billion. While the exchange is sitting on a large crypto supply range, the potential for a quick dip in bitcoin remains.
Coinbase's Quarterly Earnings Rocks Crypto Sentiment
Coinbase's quarterly earnings brought a swift change in market sentiment. Coinbase's stock price fell sharply as the crypto company missed profit and revenue estimates.
Q3 earnings dropped nearly 10% to a low of $190 on Thursday. However, compared to last year's prices, from the $33 lows during the FTX crash, Coinbase has made an impressive recovery.
Coinbase's transaction revenue increased by 98%, and its total revenue increased by 78% with subscriptions, stablecoins, and the Ethereum Layer-2 network base becoming key assets.
Institutional support is reduced
On October 31, Bitcoin spot ETFs reported a daily net flow of $32.14 million, marking the lowest figure in a week. BlackRock's IBIT ETF remained strong, posting net income of $318.80 million.
In contrast, Greyscale's GBTC and Fidelity's FBTC experienced costs of $31.15 million and $75.24 million, respectively. Ethereum spot ETFs saw a slowdown, with net income of $13.06 million.
Will The Crypto Market Come Back?
Despite the short-term volatility in the crypto market, the broad expectations for Q4 and November are incredibly bullish. Despite two of the past three Novembers being bearish, Bitcoin's overall average return in November remains at 42.80%.
Additionally, the Bitcoin half years of 2020 and 2016 showed positive returns for Bitcoin.
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