Bitcoin, Ethereum, XRP, Dogecoin Plunge As 'Extreme Fear' Sentiment Intensifies: Despite 'Terrible' Market Environment, Analyst Says 'Not Selling'
News Summary
Leading cryptocurrencies, including Bitcoin, Ethereum, XRP, and Dogecoin, plunged on Monday, mirroring declines in the stock market. Bitcoin fell below $92,000, reaching an eight-month low, while Ethereum failed to hold its $3,000 support. Total cryptocurrency liquidations surpassed $760 million, with $483 million in long positions wiped out. The Crypto Fear & Greed Index intensified to “Extreme Fear” levels. Analysts offered mixed views on the outlook: Lacie Zhang of Bitget Wallet noted Bitcoin's “death cross” with varied historical implications, projecting a consolidation range of $90,000-$110,000 for Bitcoin and $3,000-$3,600 for Ethereum through November. Michaël van de Poppe, another analyst, predicted further short-term downsides and ruled out a V-shape recovery, but emphasized patience and stated he would not be selling.
Background
The cryptocurrency market is currently experiencing a downturn that is mirroring traditional stock market movements, indicating a growing influence of macroeconomic factors and broader investor sentiment on digital assets. Technical indicators such as the "death cross" (where the 50-day moving average falls below the 200-day moving average) are typically watched by traders as a potential bearish signal, although their historical predictive accuracy can be mixed. Large-scale liquidations, particularly of long positions, are common during bear market phases, reflecting the risks of leveraged trading and the cascading effects of forced liquidations during periods of heightened market volatility. Furthermore, events like government shutdowns, such as the 42-day shutdown mentioned, inject significant uncertainty into markets, disrupt economic data releases, and can indirectly impact risk assets, including cryptocurrencies.
In-Depth AI Insights
Is the current downward pressure on cryptocurrencies, amid "Extreme Fear" sentiment, purely a technical correction or a signal of deeper macroeconomic issues? - While the Bitcoin "death cross" and liquidation cascade appear to be typical technical adjustments and deleveraging, the synchronized decline with equities, particularly tech stocks like Nasdaq, and the upcoming nonfarm payrolls data, suggest broader macroeconomic concerns are being priced in. - The political uncertainty stemming from a 42-day government shutdown, as mentioned during President Trump's administration in 2025, likely amplified investor caution regarding the economic outlook, leading to capital flight from high-risk assets, including cryptocurrencies, indicating more than just a technical retracement. Is the analyst's strategy of "not selling" predicated on a long-term conviction or an expectation of a short-term market bounce? - Michaël van de Poppe explicitly stating that a "V-shape recovery" is impossible and that "things take time" strongly suggests his strategy is rooted in a long-term conviction in the fundamental value of cryptocurrencies rather than anticipating an immediate short-term rebound. - Choosing to hold instead of selling during an "Extreme Fear" period reflects an understanding of market cyclicality, where selling into panic often leads to missing subsequent rallies. This aligns with a strategy of accumulation during bear markets by seasoned crypto investors, betting on future growth. What does the outperformance of certain altcoins (e.g., ICP, ZEN, VELO) amidst the decline of Bitcoin and Ethereum signify? - The counter-trend rallies in specific altcoins, despite overall market gloom, could indicate a rotation of capital into particular low-market-cap projects driven by specific narratives or technological advantages, as funds seek higher alpha opportunities when major cryptocurrencies are under pressure. - This phenomenon is not uncommon in bear markets and could be short-term speculative behavior or the market seeking the next potential growth area, though its sustainability requires close monitoring. It may signal a structural shift within the crypto market, where investors are looking for higher risk/reward opportunities rather than a broad-based recovery.