Is a major crypto crash on its way? Key Takeaways Bloomberg Intelligence analyst James Seyffart warns that intensified competition could trigger widespread crypto ETP liquidations as early as 2026. More than 120 crypto-related ETF filings are already in the pipeline, and regulatory changes could fuel further launches. Technical indicators point to further downside for the wider crypto market. A wave of closures and liquidations could hit crypto exchange-traded products (ETPs) as early as 2026, ac ...

Market Overview - The total crypto market cap has fallen below $3 trillion as of November 20, with over 215,000 traders liquidated and more than $820 million lost from the market [1] - Bitcoin has decreased by 2.72% to $86,590, Ethereum by 2.24% to $2,819, and XRP by 2.37% to $1.99 [1] Causes of Market Decline - The decline began on October 10 when President Donald Trump threatened a 100% tariff on imports from China, resulting in a loss of over $19 billion in a single day [2] - The market has struggled to recover since this event, indicating ongoing instability [2] Economic Factors - The Federal Reserve's uncertainty regarding interest rate decisions has contributed to the crypto market's struggles, with no expected rate cuts this year [3] - The crypto fear and greed index has dropped to 15, reflecting "extreme fear" among traders [3] Trader Sentiment - There is a stark divide in trader sentiment, with some optimistic about buying the dip while others remain pessimistic [4] - Bloomberg's Mike McGlone has warned that Bitcoin could potentially drop to $10,000, indicating further volatility ahead [4] Reactions from Influential Figures - Paolo Ardoino, CEO of Tether, referred to the situation as "Bitcoin black Friday" [5] - Ray Dalio has expressed concerns about Bitcoin's long-term vulnerabilities but has allocated 1% of his portfolio to it [5]

Core Points - President Trump's announcement of a 100% tariff on all Chinese goods has led to a significant sell-off in the cryptocurrency market, marking the worst day in crypto history [1] - The crypto market experienced a massive liquidation of over $19.2 billion in leveraged positions, resulting in the largest single-day wipeout ever [2] - Major cryptocurrencies such as Bitcoin, Ethereum, XRP, and Solana saw substantial declines, with Bitcoin dropping over 10% and Ethereum falling nearly 15% [2][3] Market Impact - The total cryptocurrency market capitalization decreased by more than 9%, reaching approximately $3.85 trillion [3] - The sell-off caused major trading platforms like Binance and Coinbase to experience system strain and outages, affecting traders' ability to exit positions [4] - Binance confirmed that all services were restored and returning to normal, while Coinbase reported latency and degraded performance but assured users that funds remained safe [4]