Wall Street screams amid Bitcoin crash... this time it might really be serious.

In the past few weeks, the cryptocurrency market has been more volatile than expected. Following Friday's downward movement, BTC dropped to just under 80,500 Dollar, recording its worst monthly performance since the Terra/FTX collapse in 2022.

The numbers look seriously bad

• BTC market capitalization has disappeared by 500 billion Dollar
• Outflow of billions of Dollars from Bitcoin spot ETFs Digital asset preparation companies (DATs) following Michael Saylor's strategy are also seeing more funds fleeing than expected.

This downturn actually has structural problems

As pointed out by Fadi Aboualfa, the head of technology at Copper, institutional investors no longer have the “HODL mentality.” They immediately adjust their positions when the market goes down. In other words, the courage to “buy the dip” like in the past is no longer present on the institutional side.

The flash crash on October 10 was the beginning of it all. In just a few hours, $19 billion in cryptocurrency positions were liquidated. This scenario caused damage to the balance sheets of many large players, forcing them into liquidations.

Analysts at Cantor Fitzgerald pointed out that the shock was much greater than initially expected. The lack of liquidity over the weekend revealed the dangers of leverage buildup at various exchanges.

Current liquidity is desperate

Market makers hurt by the crash have no room to step in and support. On Friday alone, $1.6 billion in positions were liquidated. This means that there is a high possibility that there will be no buyers in the upcoming downward movement.

The cryptocurrency market is now playing the role of a “canary” that reflects a sudden change in risk appetite. There is a notable tendency to move in correlation with the fluctuations of tech stocks.

Read the market signals

There is an interesting phenomenon pointed out by Kaiko's senior analyst Adam Morgan McCarthy: companies like medical device firms or cancer research companies suddenly change their names to “crypto asset preparation companies.” This is a signal that indicates the peak of the market cycle.

And the Fear & Greed Index has entered the “Extreme Fear” zone with a score of 11 points (out of 100). Areas below this are rare.

The price of BTC is still higher than when the Trump administration was established, but the subsequent upward movement trend has been completely stripped away. From here on, we have honestly entered an unpredictable territory.