Bitcoin Fell Below $95,000
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Bitcoin fell below $95,000 today for the first time in six months, losing about 8% in a day and continuing a four-day decline amid a general decline in the value of shares in cryptocurrency exchanges and artificial intelligence companies.
The decline engulfed the entire market: the crypto industry’s market capitalization fell by 6.1% to $3.29 trillion. Ethereum lost 9%, while the top ten altcoins experienced double-digit declines.
The collapse is attributed to a massive withdrawal of funds. Investors withdrew nearly $870 million from US Bitcoin ETFs, while simultaneously withdrawing around $260 million from ETH funds. Furthermore, exchanges forcibly closed $1.1 billion in positions, primarily on bullish bets ($968 million).
Panic sentiment is also growing in the crypto industry. The Fear Index is in the “extreme” zone (16/100), indicating high seller activity in the market.
“There’s less money in the system,” said Yat Siu, co-founder of investment firm Animoca Brands. “Investors are selling off some assets to address other weaknesses or concerns they may have about the overall downturn.”
