The crypto market continued its recent carnage on Wednesday, November 12. Bitcoin (BTC) led the broader altcoin market in increased selling pressure.
The total cryptocurrency market cap fell 2%, hovering around $3.42 trillion at the time of writing. BTC price fell below $102,000 again after bullish momentum failed to gain traction.
Top Reasons Why Crypto Dropped Today
Low market demand amid notable fears of further crypto capitulation
Overall capital inflows into the crypto market have declined significantly in the recent past, as evidenced by the spot Bitcoin and Ethereum ETFs. It is striking that the Open Interest (OI) of Bitcoin on all crypto exchanges has fallen to the lowest level in seven months.
Source: X
Meanwhile, Polymarket traders are betting that the Bitcoin price will continue to fall further in the coming days, possibly below $100,000.
Source: Polymarkt
Heavy Liquidation of Long Crypto Traders Amid Fears of a Hyperliquid Attack
Following the broader crypto correction, more than $612 million was raised from leveraged traders, with approximately $502 million involving long traders. The crypto market was also gripped by fears of a possible attack on Hyperliquid, the largest DEX futures platform.
Technical headwinds from the impact of the sell-the-news resulting from the US government reopening
Bitcoin price has sent the broader altcoin market into bearish sentiment as gold investors enjoy more profits. While the broader crypto market showed bearish sentiment over the past 24 hours, gold prices rose 2% to trade at around $4,200 per ounce at the time of writing.
The technical headwinds in the broader crypto market coincided with the US government’s reopening after a 40-day shutdown. While the reopening of the US government is positive for the economy, the crypto market experienced a potential sell-the-news impact.
Is the bull market over?
The 2025 crypto bull market is likely to resume in the coming weeks, fueled by the Fed’s money printing. Furthermore, the gold price has likely peaked and is forming a macro double top, which is bullish for the broader crypto bull market.
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