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

Bitcoin and ether fell to their lowest levels in months, dropping to $93,400 and $3,050 respectively, amidst a backdrop of dwindling liquidity. This sharp sell-off highlighted a continuing downtrend characterized by lower highs and lows across various timeframes. A significant liquidation pocket for Bitcoin looms at $92,840, which, if triggered, could drive prices further down towards support levels around $87,500. The decline in prices is attributed to shifting Federal Reserve rate-cut expectations, which are currently pegged at 50% for a December cut, typically favorable for risk assets. In the derivatives market, there is a clear bias towards put options while overall open interest in future contracts for major tokens continues to fall. Notably, the crypto fear and greed index has dropped to 17/100, indicating extreme fear among investors. Although some altcoins attempted to recover slightly from the previous weekend’s aggressive sell-off, most are still down significantly over the past week. Overall, the sentiment remains bearish within the cryptocurrency market, with many tokens witnessing substantial losses recently.

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