Crypto Markets Today: BTC, Altcoins Plunge as Liquidity Tightens and Safe-Haven Demand Soars

The cryptocurrency market experienced a broad sell-off, driving Bitcoin (BTC) below its 200-day simple moving average to near $104,500, a 6% decline in 24 hours. This downturn is attributed to tightening U.S. liquidity and rising trade tensions, which are increasing demand for safe-haven assets like Treasuries. The CoinDesk 20 Index dropped nearly 9%, and the Crypto Fear & Greed index hit 22, signaling extreme fear. Over $1.2 billion in crypto derivatives were liquidated in 24 hours, primarily affecting long positions in ETH and BTC, raising concerns that a break below $100,000 could trigger a broader bear market. Analyst Timothy Misir advised defensive positioning, reducing leverage, and waiting for confirmation of sustained buy-side flows before increasing risk, although he noted that structural narratives like ETF adoption remain intact. Despite high short-term call option premiums suggesting potential upside conviction, the overall sentiment remains bearish due to macro uncertainty.

(Source：CoinDesk)