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

Bitcoin and ether experienced significant declines over the weekend, reaching multi-month lows of $93,400 and $3,050 respectively. This drop, characterized by a sequence of lower highs and lower lows across various timeframes, has been exacerbated by thin liquidity conditions and shifting expectations regarding the Federal Reserve's interest rate cuts. With the Fed's anticipated decision on rate reductions now at a 50% likelihood for December, market sentiment has turned bearish, reflected in the crypto fear and greed index dropping to 17/100, indicating 'extreme fear'. Additionally, a permanent liquidation pocket at $92,840 could trigger further selling pressure, potentially bringing prices down to around $87,500. Meanwhile, derivatives positioning shows a continued exit from the crypto market, with significant declines in open interest for futures contracts, particularly for BTC and ETH. Although some altcoins had muted recoveries, most remain over 10% down for the week, reflecting a broader bearish trend across the cryptocurrency market.

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