Bitcoin Slips Below $104K as Crypto Market Extends Losses

Bitcoin dropped below $104,000, reflecting a 17.5% decline from its peak amid a broad market sell-off linked to a DeFi crisis and macroeconomic fears. Analysts highlighted a significant amount of bad debt in the decentralized finance sector, estimated at $284 million, driving risk-off sentiment among investors. The market saw a liquidation of approximately $1.37 billion over 24 hours as traders unwound leveraged positions, causing the annualized futures premium on exchanges to fall, indicating reduced bullish optimism. The once-positive sentiment shifted drastically, with the Greed index falling from 59% to 51.9%, suggesting increased bearish outlooks among traders. This downturn, following the first negative October in six years, leaves investors uncertain whether it signifies a deeper bear trend or a necessary correction. Analysts believe the resolution of the current DeFi concerns and clarifications on macroeconomic issues will be crucial for stability in the crypto market.

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