Bitcoin experienced a significant drop to $81,050, leading to $2 billion in liquidations for 391,000 traders. Bitcoin ETFs saw $3.79 billion in November outflows, with BlackRock alone facing $2.47 billion in redemptions. The Crypto Fear & Greed Index hit its lowest level since November 2022 at 11.

The cryptocurrency market suffered a brutal selloff, erasing over $2 billion in leveraged positions within 24 hours. Bitcoin’s drop to $81,050 triggered margin calls, affecting major tokens like Ethereum, Solana, XRP, and Binance Coin. 391,000 traders were liquidated, and the Crypto Fear & Greed Index fell to 11.

In the aftermath, 391,000 traders lost positions totaling $1.91 billion, with long positions accounting for $1.78 billion. Bitcoin led with $960 million in liquidations, followed by Ethereum at $403 million. The total crypto market cap dropped 6% to $2.9 trillion, below the $3 trillion threshold.

Multiple factors contributed to the market downturn, including Bitcoin’s struggle to hold $100,000 and institutional outflows totaling $3.79 billion in November. The Fed’s hawkish tone and the Crypto Fear & Greed Index hitting 11 added to negative sentiment. The market saw extreme fear and reduced liquidity due to outflows.

Bitcoin hit its lowest price since April at $81,600, Ethereum fell below $2,900, and Solana also posted losses. The selloff triggered $2 billion in liquidations, showcasing the market’s leverage and volatility. Risk management and monitoring institutional flows through ETFs are crucial for traders in navigating market fluctuations.

Read more at Yahoo Finance: $2B in 24-Hour Liquidations as Fear Hits Extreme