Content
The cryptocurrency market has faced significant turmoil recently, with Bitcoin leading the downturn. On Monday, November 17, during the late North American trading session, the total crypto market cap dropped by 2%, settling around $3.12 trillion. This decline resulted in approximately 154,000 traders being liquidated, with the total liquidations amounting to a staggering $801 million. Among these, long traders accounted for roughly $500 million, intensifying the ongoing midterm selloff by triggering a long squeeze.
Over the past month, the crypto space has witnessed relentless sell-offs. In just 41 days, the total market capitalization has plunged by more than $1.1 trillion, primarily due to heavy liquidations targeting long holders. This has fueled widespread anxiety among investors, who are now bracing for a potentially deeper crash. Reflecting this sentiment, the Crypto Fear and Greed Index, as reported by Binance-backed CoinMarketCap (CMC), dropped to 17—nearly the lowest point seen so far this year.
Interestingly, recent market data suggests a shift in traders’ preferences towards Bitcoin rather than altcoins. The CMC’s Altcoin Season Index hovered near 30 out of 100, indicating that most altcoin projects are struggling with low liquidity and continued losses. This Bitcoin favoritism is a sign that traders may be seeking safer havens amidst the market chaos.
Despite these bleak short-term conditions, several major macroeconomic developments could inject fresh liquidity into global markets, potentially sparking a bullish phase for crypto in 2025. The United States is reportedly preparing to issue $2,000 stimulus checks, while Japan is set to roll out a $110 billion stimulus package. China has also given the green light to a massive $1.4 trillion stimulus plan. Moreover, the US Federal Reserve is scheduled to end its Quantitative Tightening program by December 1st, and Canada is restarting its Quantitative Easing measures.
Global monetary conditions support this optimistic outlook, with the worldwide M2 money supply reaching a record $137 trillion. Additionally, over 320 interest rate cuts have taken place globally over the past two years. Historically, such spikes in money supply and ease in monetary policies tend to create a favorable environment for asset markets, including cryptocurrencies.
As the crypto community navigates these turbulent times, it remains cautious but watchful for potential inflection points driven by these macro factors. While the current selloff has shaken confidence, the interplay between ongoing market stress and upcoming policy changes could set the stage for a revived altseason in 2025. Investors are advised to stay informed and carefully evaluate market signals before making decisions.
CoinPedia continues to provide reliable and timely updates on these developments, adhering strictly to editorial standards emphasizing experience, expertise, authoritativeness, and trustworthiness. All content is fact-checked to maintain accuracy and transparency, ensuring readers receive unbiased and comprehensive insights into the crypto and blockchain world.
