Total crypto market capitalization has fallen by nearly 5% over the past day and now stands at around $2.54 trillion. Bitcoin is trading just below $75,000, down roughly 4% on the day.
Ethereum has dropped by about 10%, while BNB, XRP, and the rest of the top-10 cryptocurrencies are also posting losses.
Market sentiment remains extremely tense: the Fear & Greed Index has dropped to 15, firmly in the zone of extreme fear.
Over the past five days, not only Bitcoin but also gold and silver have declined significantly, signaling a broader deterioration in risk appetite across markets.
The primary trigger for the move was a broad wave of liquidations amid a general shift away from risk. Notably, the correlation between the crypto market and gold prices has climbed to 58%, pointing to a macro-driven synchronized sell-off.
The key driver behind the sell-off was the mass unwinding of leveraged long positions, particularly in Bitcoin. Over the past 24 hours, BTC positions worth more than $243 million were liquidated, with more than 80% coming from longs. At the same time, total open interest fell by nearly 10%.
The data point to rapid deleveraging after a period of heavy long positioning. Falling prices triggered a cascade of automated sell orders, amplifying the downside move.
Additional pressure came from weakness across major ecosystems. Ethereum and other large Layer-1 networks underperformed the broader market. ETH dominance slipped to 10.46%, and the poor performance of the leading smart-contract platform intensified capital outflows from altcoins and higher-risk segments.
Geopolitical risks are further darkening the outlook. Rising tensions in the Middle East—particularly around the Strait of Hormuz—have weighed on investor sentiment. Iran has recently placed its armed forces on “full defensive and combat readiness,” while the United States has been positioning naval vessels off the region’s coast for several days.
At the start of the week, market participants will also be closely watching U.S. manufacturing PMI data. The ISM index fell for a third consecutive month in December to 47.9, well below expectations (48.3), continuing to signal contraction in the industrial sector. Final figures due on Monday at 16:00 CET could have a meaningful impact on both equity and cryptocurrency markets.
