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.

Summary

• The crypto market crash continued on Monday, with Bitcoin falling below $93,000.
• Stablecoin exchange outflows have accelerated in the past few months.
• The decline happened as the Crypto Fear and Greed Index moved to the extreme fear zone.

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 to a technical bear market. ETH has dropped by 35% from the year-to-date high, while Bitcoin has retreated by 25%.

The ongoing crypto market downturn 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 Donald Trump unveiled his reciprocal tariffs. Cryptocurrencies typically retreat when investors are fearful and rally when greed is continuing.

Bitcoin price formed a death cross 

Meanwhile, the crypto market is falling as technicals worsen. For example, 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, a sign that the downtrend is gaining momentum. As such, the Bitcoin price may continue falling to the important support level at $88,790, its highest level in March.

Looking ahead, the crypto market will react to Nvidia’s earnings and the FOMC minutes, both due Wednesday. 

Nvidia, the world’s largest company, will publish its third-quarter results, which will provide more color on the state of the artificial intelligence industry. 

Strong results will mean that the AI industry is doing well, which will push the stock market higher, and possibly cryptocurrencies.

The upcoming Federal Reserve minutes will offer more color on the last meeting and hints on what to expect at the December meeting.