Crypto market crash: Why are BTC, ETH, SOL, XRP and DOGE sliding today?
Investors are scaling back on risk assets amid declining hopes that the Federal Reserve will cut rates before the end of the year.
- The crypto market crash affected most major crypto assets.
- The likelihood of December rate cuts has fallen to just 33%.
- Bitcoin could fall to 75,000 if macro conditions further worsen
The crypto market is facing another sharp sell-off today amid deteriorating macro conditions. On Thursday, November 20, Bitcoin fell 2.52% to $86,585, its lowest level since April. Ethereum (ETH) fell to $2,818, erasing all its gains since July.
Altcoins demonstrated even greater volatility. Solana price went from its daily high of $144 to $132, while XRP (XRP) price fell below the crucial psychological level of $2. Dogecoin (DOGE), the biggest memecoin, fell from its daily high of $0.1591 to $0.1473.
The reason for this decline is mainly due to overall market conditions. Crypto is increasingly integrated into traditional finance, Jamie Elkaleh, CMO at Bitget Wallet, argues. While this is good in the long run, it also exposes crypto markets to the full effects of Federal Reserve policy.
What’s next for BTC after the crypto market crash?
The short-term outlook, analysts point out, is negative, but not catastrophic. Bitcoin’s (BTC) resistance at $89,000 was fragile, as the token occasionally slipped below that level. With its collapse, the next target is $85,000, says Arthur Azizov, Founder and Investor at B2 Ventures.
Excessive leverage, profit-taking, and an expected slowdown in corporate accumulation are worsening the outlook for Bitcoin, says Armando Aguilar, Capital Formation Lead at TeraHash. Still, he anticipates that Bitcoin will bounce back, unless macro conditions worsen.
Crypto Snapshot
| CRYPTOCURRENCY | PRICE | 24-HOUR GAINS +/- |
| Bitcoin (BTC) | $86,768 | -2.4% |
| Ethereum (ETH) | $2,830 | -1.6% |
| Solana (SOL) | $132 | +1% |
| XRP (XRP) | $1.99 | -2.6% |
| BNB (BNB) | $875 | 0.0% |
| Cardano (ADA) | $0.4332 | -1.5% |
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