Bitcoin Slips Below $104K as Crypto Market Extends Losses

Market Overview - The cryptocurrency market has experienced significant losses, with Bitcoin dropping below $104,000, marking a decline of 3.2% on the day and 17.5% from its record high in early October [1][2] - Major altcoins such as Ethereum, XRP, BNB, and Solana have also seen losses ranging from 5% to 9% within 24 hours [2] Market Sentiment - Market sentiment has deteriorated, as indicated by the annualized futures premium on major exchanges falling from approximately 7% to below 4% over the past week, suggesting reduced investor willingness to pay for bullish positions [3] - The Greed index has decreased from 59% on November 1 to 51.9%, with users now predicting a 71% chance of Bitcoin's price moving towards $100,000 instead of $120,000, a significant shift from 44% on November 3 [4] DeFi Crisis Impact - A crisis of confidence in the decentralized finance (DeFi) sector is identified as a key catalyst for the market downturn, with Stream finance reporting $93 million in asset losses and total bad debt across lending markets estimated at $284 million [5] - Previous incidents, including a $128 million exploit of Balancer and the effects of October's liquidation event, have further eroded confidence in the DeFi space [6] Broader Economic Factors - The ongoing market crash reflects a broader risk-off sentiment as traders unwind leveraged positions amid macroeconomic uncertainties, including weak U.S. jobs data and a more hawkish Federal Reserve [7] - The volatility in the bond market is contributing to investor unease, leading to a sell-off in both traditional and crypto markets [7]