The cryptocurrency market is currently experiencing a volatile phase, with the global market cap decreasing by 5.97% to stand at $3.17 trillion. Despite this decline, trading volume has surged by 24.17% to $252.59 billion, indicating increased trading activity. The Fear & Greed Index remains at a high of 80, suggesting extreme greed even amidst this market correction.
Market Trends and Liquidations
The Altcoin Season Index is at 41, indicating that a full-scale altseason is still on the horizon. Meanwhile, over $489 million in liquidations have impacted more than 186,000 traders. Memecoins have been hit hardest, followed by Bitcoin and other altcoins. Despite the recent market downturn, strong institutional support and increasing adoption metrics suggest a robust outlook for the crypto sector.
Bitcoin Holds Strong Amid Market Volatility
Bitcoin continues to maintain its dominance with a market share of 57.9%, despite a 5.96% drop in its price, bringing it to $92,298.35 over the past 24 hours. Trading around Bitcoin has intensified, with volumes expanding by 63.39% to reach $94.38 billion. The largest cryptocurrency is also enjoying positive institutional backing. For instance, on November 25, Bitcoin ETFs witnessed a net inflow of $489.16 million, with BlackRock’s iShares Bitcoin Trust alone contributing $492.28 million. This move has increased its holdings to 492,623 BTC, valued at approximately $46.96 billion.
On-chain metrics reveal a significant milestone for Bitcoin, as daily active users are approaching 1 million for the first time since 2019. This increase is a testament to the rising adoption among retail investors and large-scale investors alike. To delve deeper into Bitcoin’s future, explore our comprehensive Bitcoin Price Prediction and examine whether BTC can surpass the psychological $100k mark soon.
Altcoin Update: Mixed Performances Across the Board
Ethereum has seen its price decrease by 4.96% to $3,318.18. Solana and XRP experienced even steeper declines, falling by 9.35% and 9%, respectively. Interestingly, Ethereum ETFs recorded a net inflow of $82.02 million on November 25, with BlackRock’s iShares Ethereum Trust contributing $104.45 million, demonstrating strong institutional interest.
Among the altcoins, Fantom has emerged as a notable performer, gaining 4.97% to trade at $0.9892. Other altcoins like Sei and Lido DAO have also posted modest gains. However, metaverse tokens such as The Sandbox and Decentraland have faced sharp declines of 20.49% and 16.59%, respectively.
FAQs
1. Why is the crypto market experiencing a downturn today?
The market has witnessed a 5.97% decline due to several factors, including liquidations totaling $489 million and profit-taking by investors. Nonetheless, institutional inflows continue to underscore strong long-term support for the market.
2. What’s driving Bitcoin’s dominance despite the price dip?
Bitcoin maintains a 57.9% market dominance, bolstered by significant ETF inflows, increased trading activity, and expanding adoption among retail and institutional investors alike.
3. Is the altseason starting soon?
The Altcoin Season Index is currently at 41, indicating that a full-fledged altseason is not yet underway. However, certain tokens like Fantom are demonstrating resilience amidst the broader market trends.
