Cryptocurrency markets experienced a downturn on Friday, with Bitcoin and Ethereum leading the decline. This drop comes amidst significant outflows from Bitcoin and Ethereum exchange-traded funds (ETFs), signaling a lack of investor confidence in the short term.
In a live session on X, Fred Krueger aptly titled his discussion “The thrill is gone. Friday Bitcoin Blues” as Bitcoin slipped below the $53,000 mark. Bitcoin saw a 4.6% drop, while Ethereum declined by 6.2%. Other notable losses included Solana (-2.9%), Dogecoin (-6.7%), and Shiba Inu (-3.4%).
On-chain data revealed a 10.5% decrease in large transaction volume, indicating a decline in institutional activity. The number of transactions exceeding $100,000 fell from 8,371 to 7,820. While daily active addresses increased by 3.3%, netflows on exchanges plummeted by 60.5%.
Coinglass data showed that 60,197 traders were liquidated in the past 24 hours, with total liquidations reaching $196.67 million. Long liquidations for both crypto and Bitcoin were particularly high, reaching $147 million and $63.6 million respectively, marking the highest levels since August 27th.
Despite the current bearish sentiment, some analysts remain optimistic about Bitcoin’s long-term prospects. Crypto chart analyst Ali Martinez observed that the accumulation trend score is almost zero, suggesting market participants are either distributing or not accumulating Bitcoin at the moment. This could signal a potential shift in sentiment towards a more bullish direction in the future.
CryptoCon, a crypto analyst, noted that the market has been waiting for new Bitcoin highs for six months, but has only seen sideways and declining movement. He drew parallels to 2019, where a similar price structure unfolded over an extended period. CryptoCon concluded that this “short-term mess will be over soon.”
IncomeSharks, another crypto analyst, highlighted that the Bitcoin chart continues to show local top signals, urging investors to be cautious even when the market appears bullish.
The influence of Bitcoin as an institutional asset class is expected to be thoroughly discussed at Benzinga’s upcoming Future of Digital Assets event on November 19th.
