Crypto Markets Today: BTC, ETH Prices Sink to Lowest in Months as Liquidity Dries Up

Bitcoin and ether have reached multimonth lows, with Bitcoin dropping to $93,400 and ether to $3,050 as liquidity conditions worsen in the cryptocurrency market. A significant $62 million liquidation threshold looms just below these levels, which, if triggered, could further depress prices to approximately $87,500. This downturn is tied to shifting expectations regarding the Federal Reserve's interest rate policies, now indicating a 50% chance of a December rate cut, which is typically seen as beneficial for risk assets. Open interest in futures contracts has declined for many tokens, signaling reduced trading activity and capital exiting the market. Additionally, the crypto fear and greed index has plummeted to 17/100, indicating extreme fear among investors, while market momentum remains bearish. Despite minor recoveries over 24 hours, most major altcoins, including Solana and privacy coins, remain significantly down over the past week. The overall sentiment in the altcoin market reflects ongoing bearish pressure, underlined by the recent sell-off that has erased earlier gains for many cryptocurrencies.

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