XRP Crypto Bear Market Is Here!? | This Is Why Crypto Crashed

Market Analysis - Crypto market sentiment is currently at peak negative, with the Fear and Greed Index at 10, matching the lows seen in February 2025 [19][25] - The crypto market has experienced a significant downturn, erasing $1.1 trillion in market cap over 41 days, averaging $27 billion per day [10] - Bitcoin has underperformed gold by 25 percentage points since early October, indicating a shift in safe haven asset preference [20][21] - Ether is down 8.5% year-to-date and 35% since October 6th, suggesting a structural bear market despite broader rallies in risky assets [21] Leverage and Liquidation - Excessive leverage, with positions at 20x, 50x, or even 100x, is exacerbating market volatility and liquidation cascades [15][16] - A 2% move at 100x leverage can liquidate a position, leading to a domino effect when millions of traders use high leverage [16] - The market has seen three days with liquidations exceeding $1 billion in the last 16 days, with daily liquidations of $500 million becoming common [19] - A $19.2 billion liquidation spree on October 10th led to the first ever $20,000 Bitcoin daily candlestick [18] External Factors and Sentiment - Despite a pro-crypto administration and positive news, the crypto market is experiencing negative price action [4][5][6][7][12][13] - Institutional outflows in mid to late October have contributed to the downturn, with crypto funds seeing $1.2 billion of outflows in the first week of November [14] - The spread of FUD (Fear, Uncertainty, and Doubt), such as false claims of Michael Sailor selling Bitcoin, accelerates sell pressure and liquidations [27][28][29][30][31]