Crypto market crashes as stablecoin exchange outflow jumps

The crypto market crash continued its downtrend today, Nov. 17, as the Fear and Greed Index plunged to extreme fear and stablecoin exchange outflows jumped. Bitcoin (BTC) price dropped below $94,000 for the first time since May 6, while Ethereum (ETH) plunged to $3,020. Some of the top laggards were tokens like Dash, Decred, Telcoin, and Aerodrome Finance, which dropped by over 7% in the last 24 hours.

Bitcoin and most altcoins have also moved into a technical bear market. ETH has dropped by 35% from its year-to-date high, while Bitcoin has retreated by 25%. The ongoing downturn in the crypto market occurred as retail investors continued selling their tokens, while many remained on the sidelines. Data compiled by Nansen shows that the amount of stablecoins in exchanges continued to plunge.

The stablecoin exchange balance dropped to $85 billion, its lowest level since October 11. It has been in a strong downward trend since Nov. 10 when it peaked at $89 billion. Falling stablecoin balances in exchanges are a sign that investors are exiting their positions. The crypto market crash is also happening as the Fear and Greed Index continues to freefall. It plunged into the extreme fear zone, to 17, its lowest level since April, when the previous administration unveiled its reciprocal tariffs. Cryptocurrencies typically retreat when investors are fearful and rally when greed prevails.

Bitcoin's technical signals suggest a bearish trend with death cross formation

Meanwhile, the crypto market is experiencing further declines as technicals worsen. For instance, Bitcoin formed a double-top pattern at $124,560 and a neckline at $107,276. It has also formed a death cross pattern, which occurs when the 50-day and 200-day Exponential Moving Averages cross downward. The Average Directional Index has jumped to 35, its highest level since May, indicating that the downtrend is gaining momentum. As a result, the Bitcoin price may continue falling to the support level at $88,790, its highest level in March.

Market awaits Nvidia's earnings and FOMC minutes for potential direction

Looking ahead, the crypto market will react to Nvidia’s earnings on Wednesday and the upcoming Federal Open Market Committee (FOMC) minutes. The FOMC minutes for the November 12-13 meeting will be released on Wednesday, November 19. Nvidia, the world’s largest company, will provide insights into the state of the artificial intelligence industry. Strong results will indicate that the AI sector is performing well, which could push the stock market higher and potentially benefit cryptocurrencies. The forthcoming Federal Reserve minutes will offer additional details on the last meeting and hints regarding expectations for the December meeting.

Stablecoin exchange outflows reveal investors exiting their positions

As the market continues to struggle, the drop in stablecoin balances is particularly concerning. The decrease in stablecoin exchange outflows suggests that investors are choosing to exit their positions in the market, further indicating a lack of confidence and a shift towards risk aversion. This trend reflects broader market sentiment, where fear dominates and many investors remain hesitant to re-enter the market. The current environment emphasizes the importance of monitoring these metrics closely as they can signal shifts in market dynamics.