The crypto market is falling today, November 13, with Bitcoin and most altcoins being in the red. Bitcoin has dropped below the crucial support level of $70,000, while the valuation of all tokens slipped by over 5.7% in the last 24 hours to $2.3 trillion. Some of the top laggards were tokens like GateToken (GT), Monero (XMR), Stacks (STX), Uniswap (UNI), and Venice Token (VVV).
Crypto Market is Falling as Fear and Greed Index Dips
One reason the crypto market is falling today is that the Fear and Greed Index has dropped to 18, deep in the extreme fear zone, from a September high of 85. The index matters because it measures overall sentiment in the crypto industry. It does this by tracking several key metrics, including Bitcoin’s price action, activity in the derivatives market, and social media trends.
In most cases, Bitcoin and other cryptocurrencies do well when the Fear and Greed Index is rising and struggle when it is falling. However, crypto bull markets often begin when the index drops into the extreme fear zone, and they tend to peak when it jumps into the extreme greed zone.
Crypto Prices Falling as US Bond Yields Jump
The crypto market is also reacting to the ongoing performance of the bond market. Data shows that the ten-year yield rose to 5.12%, while the 30-year and five-year yields jumped to 5.4% and 4.96%, respectively.
US bond yields have risen because of the recent macro numbers. Data released last week showed that the economy created 165k jobs in October, while the unemployment rate dropped to 4.1%.
Another report released this week showed that the headline and core Consumer Price Index (CPI) rose at a faster pace than expected last month. These numbers mean that the Fed will decide to hike interest rates in the December meeting, with Christopher Waller advocating for a 0.50% increase.
Bitcoin and other risky assets often underperform the market when the Federal Reserve is hiking interest rates. Higher rates make risky assets less attractive, with investors rushing to the safety of fixed income.
Bitcoin and Altcoin ETF Outflows are Rising
The crypto market is going down because of the ongoing performance in the exchange-traded funds (ETF) market. Spot XRP ETFs have lost over $18 million in assets this month, which is notable since it is the first month of outflows since March.
Spot Bitcoin ETFs have shed over $1.8 billion in assets, more than thrice what they lost in October this year. Ethereum ETFs lost over $695 million this month after losing $1.6 billion last month.
Rising ETF outflows put more pressure on the crypto market by increasing supply. It also signals that institutional and smart-money investors are starting to sell their assets.
The ongoing ETF outflows have coincided with the falling futures open interest. The total open interest dropped by over 6% in the last 24 hours to $119 billion. These developments have coincided with the recent midterm elections in which Democrats won the House and the Senate by a large margin.
Bitcoin Price Technicals Have Contributed
Further, Bitcoin’s technicals have contributed to the ongoing crypto market weakness. The chart above shows that BTC has been in a steep sell-off and has just dropped below the 61.8% Fibonacci retracement level. In most cases, a move below this support level confirms a bearish outlook.
The coin has also dropped below the 50-day and 100-day Exponential Moving Averages (EMA), a sign that bears have prevailed. Therefore, the coin will likely continue falling, which will drag the crypto industry lower.
This article provides cryptocurrency market information, not financial or investment advice. Market prices, ETF flows and technical indicators can fluctuate rapidly. Macroeconomic conditions do not guarantee particular cryptocurrency price outcomes.
Crispus is a distinguished Financial Analyst at, bringing over 12 years of expertise in cryptocurrency markets, specializing in Bitcoin and altcoins. Renowned for his sharp insights at the nexus of market trends and breaking news, Crispus delivers actionable analysis to empower investors. His work is prominently featured across leading platforms, including BanklessTimes, CoinJournal, HypeIndex, SeekingAlpha, Forbes, InvestingCube, Investing.com, and MoneyTransfers.com, cementing his reputation as a trusted voice in the financial world.
About this article
This report follows our Editorial Policy, Fact-Checking Standards and Code of Ethics. Found an inaccuracy? See Corrections.
Disclaimer. Informational only, not financial advice. Crypto, forex and stocks are volatile, high-risk assets — always do your own research and consult a qualified adviser.
