Why are Bitcoin and crypto market down today?

• BTC’s price is currently hovering at about $108,068, a 2.62% decrease compared to the last 24 hours
• Over $400 million in liquidations occurred in the past 24 hours, pushing Bitcoin and major altcoins downward
• Long-term holders sold 405,000 BTC in the last 30 days.

Despite its strong momentum in early October, Bitcoin has recently slid below $110,000, pulling down the crypto market with it, which often causes worry for traders and investors.

Following the drop, Bitcoin’s price consolidated within a range of approximately $107,000 to $110,000, a zone representing a big psychological and technical support area. BTC’s price is currently hovering at about $108,068, a 2.62% decrease compared to the last 24 hours.

One of the main reasons why the price is down is due to over $400 million in liquidations occurring in the past 24 hours, pushing Bitcoin and major altcoins downward. Many saw drops of up to 6% in the last 24 hours, including XRP, Solana, Ethereum, BNB, and the rest.

Also, data from several days ago shows that Bitcoin ETFs recorded $471 million in total net outflows, possibly adding to the recent price drop.

Another reason for the price pressure is that long-term holders (those who’ve kept BTC for over 155 days) sold hundreds of thousands of coins (405,000 BTC) in the past 30 days. This suggests that ownership of the available supply is changing hands.

Related: Bitcoin’s December Dilemma: FOMC Split on Rate Cut Raises Uncertainty for Altcoins

Most of this likely stemmed from Jerome Powell (Chair of the Fed) saying a few days ago that further rate cuts (particularly in December) are “not a foregone conclusion”. 

Investor confidence wavers

A mix of technical selling, forced liquidations, big investors pulling back, and economic worries has created a climate where people are avoiding risk. Bitcoin falling below $110,000 points to a situation where questions about whether the market can actually go higher right now become more prominent.

As it usually goes, if Bitcoin falls, the others follow. Such is the case here as well, with a lot of altcoins having losses at the moment.

Related: Fakeouts: Bitcoin’s Systematic Departure From Historical Patterns

With fewer new buyers entering the market and major players either selling or moving their money around, prices may struggle to find a solid floor. 

In the end, with the market still on edge, traders are watching to see whether Bitcoin can stay above its current support level. If it falls and holds below $107,000, it could signal a steeper drop. On the other hand, new money flowing into ETFs or positive economic news could be what’s needed to calm the market down.