Crypto Markets Today: Fear Grips Market as BTC Price Tests Support, Altcoins Weaken

Bitcoin hovered near $91,000 with the Fear & Greed Index dropping to 15/100, its lowest since April. The market is experiencing extreme fear, prompting a potential test of the $87,500 support level. More than $1 billion in leveraged futures positions were liquidated, with bulls being crowded out. The implied volatility for Bitcoin reached a six-week high, while short positions contributed significantly to losses. Privacy tokens faced sharp declines, with Zcash and Dash dropping 14% and 9% respectively. Conversely, some tokens tied to derivatives exchanges, like ASTER and HYPE, saw gains despite the broader market weakness. Overall, altcoins suffered a loss of 3.8% in value over 24 hours, and traders are advised to exercise caution as the market may encounter further corrections before any recovery becomes evident. The situation suggests that traders may look to Bitcoin as a more stable investment amidst this volatility.

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