Bitcoin and top altcoins are tanking today, Nov. 20, as the week’s sell-off accelerates across crypto and equities. The Dogecoin (DOGE) token has dropped by 11.58% in the last seven days, while the Shiba Inu (SHIB) is down by 12%.
Cardano price has dropped by 20% in the last 7 days, while XRP is down by 15% in the same period. Bitcoin and all other altcoins have now shed over $1.2 trillion in assets in the past few weeks.
Top Reasons Why Altcoins are Tanking Today
Bitcoin and top altcoins like Dogecoin, Shiba Inu, XRP, and Cardano are tanking amid a surge in liquidations. Data compiled by CoinGlass shows that liquidations jumped by 97% on Thursday to $911 million.
Bitcoin accounted for more than $370 million in forced liquidations, while Ethereum traders saw over $230 million wiped out. Liquidations help to drag crypto prices lower by closing bullish trades.
The crypto market crash also occurred as deleveraging accelerated. The futures open interest in the crypto industry dropped by 1.47% in the last 24 hours to over $134 million. At the peak this year, open interest soared to over $300 billion as traders like Machi Big Brother took on substantial leverage.
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Bitcoin and top altcoins are also dropping as the stock market erased earlier gains amid concerns about the artificial intelligence bubble. The Dow Jones Industrial Average, S&P 500, and Nasdaq 100 indices dropped by 283, 60, and 245 points, respectively.
After jumping initially, Nvidia’s stock price dropped by over 4% after its earnings, then it erased that and dropped by over 1%. Investors are concerned about the AI bubble and valuations in the AI industry. In a note, an analyst said,
“The market’s early rally was ‘wilting” and Nvidia’s rising accounts receivables numbers may have been what spooked traders. It does beg the question: If things are flying off the shelves, then why aren’t you getting paid for it?”
Crypto Fear and Greed Index Tanks
Bitcoin and other altcoins are crashing as extreme fear spreads in the market. The closely-watched CNN Money Fear and Greed Index plunged to the extreme fear zone of 8. All its sub-indices, such as put and call options, market momentum, stock price breadth, and strength, moved into the extreme fear zone.
The Crypto Fear and Greed Index also plunged to the extreme fear zone of 15. It is common for the crypto market to plunge when there is fear.
There are other reasons why altcoins are tanking today. For example, the US published stronger-than-expected jobs data on Thursday, suggesting that the labor market stabilized ahead of the government shutdown. Also, these tokens are plunging after Bitcoin formed a death cross pattern.
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