66b wiped overnight… btc clings to 100k

So we woke up to another bloodbath today. The crypto market lost around 66 billion in value overnight with Bitcoin dipping back toward 100k and most altcoins getting absolutely wrecked.

Bitcoin dropped about 2% and is sitting just above that psychological 100k level again. Ethereum was weaker, hovering in the mid-$3,000s. But honestly the real carnage was in altcoins where basically everything is deep red.

There’s been some standouts tho. A few smaller tokens actually pumped hard while everything else was tanking. Momentum (MOM) surged around 240%, and some AI-related projects saw decent gains. But for every winner there’s like 50 losers right now.

The Fear and Greed Index has completely collapsed. It was around 58 a month ago and now it’s in the high-20s, which puts us deep in fear territory. That’s one of the lowest ranges since early 2024 so sentiment is genuinely terrible.

What’s causing this? Multiple things honestly. Spot Bitcoin ETFs saw about $578M in net outflows yesterday, with Fidelity alone around $357M, which is heavy institutional selling pressure.

Fed Chair Powell basically said a December rate cut isn’t guaranteed, which spooked everyone. Higher rates for longer means people pull money out of risky assets like crypto. Plus the dollar keeps getting stronger, which historically weighs on crypto prices.

Liquidations have been brutal too. Over $2B in positions got liquidated in 24 hours, mostly people betting on prices going up. When leverage unwinds like this it creates a cascading effect that amplifies the selloff.… if you’re reshuffling positions in this chop, tag buys vs transfers and lot ids as you go… i keep it tidy in Awaken tax so the reporting doesn’t turn into detective work later.

The question now is whether this is just healthy deleveraging before the next leg up or the start of something worse.