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Crypto Reporter
Shalini Nagarajan
Crypto Reporter
Shalini Nagarajan
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Good morning Asia, the markets are painting a deep shade of red today.
Bitcoin fell to a five-month low on Wednesday, briefly dipping below $100,000 as investors reacted to the prolonged US government shutdown and fresh signs of slowing growth.
Ether led losses, falling more than 12% to $3,179. The drop leaves Bitcoin near its weakest level since May, about 20% below its early October peak above $126,000, as enthusiasm fades and liquidity fades.
Expedited settlements. About $2.09 billion of crypto positions were wiped out in the last 24 hours, CoinGlass data showed, including $1.68b from longs. The tally remains well below October’s record high of $19 billion, but traders have become more cautious since that rout.
Market snapshot
- Bitcoin: $101,464, down 4.8%
- Ether: $3,310, down 9%
- XRP: $2.22, down 5.3%
- Total crypto market cap: $3.45 trillion, down 4.8%
Altcoins under pressure as Bitcoin dominance climbs over 60%
Market structure trends continue to favor Bitcoin over smaller tokens. Analyst Benjamin Cowen has projected that altcoins could fall another 30% against Bitcoin in the coming weeks, as investors flock to the biggest asset near the $100,000 level. Bitcoin dominance increased to 60.15% as risk appetite narrowed.
Elsewhere, US stocks ended sharply lower on Tuesday after major banks warned of a possible drawdown.
The S&P 500 and Nasdaq posted their biggest one-day declines since Oct. 10, with weak technology setting the tone as the market reassessed stretched valuations tied to the artificial intelligence boom.
Executives at Morgan Stanley and Goldman Sachs warned about bubble risks after a series of all-time highs for the S&P 500.
Jamie Dimon, chief executive of JPMorgan Chase, previously warned of a significant correction risk in the next six months to two years, citing geopolitical tensions.
Longest US shutdown freezes data as markets look for direction
The government shutdown, led by a congressional impasse, is close to a record 36 days. With official statistics pending, investors will rely on private gauges, such as the ADP National Employment Report due on Wednesday, while analyzing Federal Reserve comments for policy signals in a data vacuum.
The movements of the sector were strong. Technology stocks fell 2.3% to pace declines in the 11 sectors of the S&P 500, while financials led the gainers. Futures later pointed to a softer US open, adding to nerves.
Asia followed Wall Street lower. MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.8%, dragged down by a 4.1% slide in South Korea’s Kospi. US e-mini futures fell another 0.4% after the S&P 500 fell 1.2% overnight.
Flows have been selective, with buyers picking up on strength and bidding on weakness.
Traders cite Trump’s rhetoric on China, liquidity strains and Fed doubts as pressure mounts
Macro cross-currents keep pressure on crypto. Traders cited President Trump’s ongoing trade fights, including a recent threat against China that preceded October’s record sell-offs, along with concerns about liquidity and fading confidence in a possible third US rate cut in 2025.
However, there are potential upside markers. Ryan Lee, chief analyst at Bitget, said that Bitcoin could test $115,000 to $120,000 if macro signals improve, while Ether may bounce back towards $4,200 on scale 2 gains and a more stable DeFi backdrop.
“Key catalysts to monitor include upcoming Fed rate decisions, ongoing ETF inflows, and regulatory clarity from global bodies like the SEC, all of which could accelerate mainstream integration,” he said.
“That said, geopolitical tensions and unexpected inflation prints remain key downside risks that could trigger sharp pullbacks.”
