Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesEarnSquareMore
Extreme Caution Sweeps Markets as Equities and Crypto Dive

Extreme Caution Sweeps Markets as Equities and Crypto Dive

CointribuneCointribune2025/11/23 03:15
By:Cointribune
Summarize this article with:
ChatGPT Perplexity Grok

A wave of caution swept through markets on Thursday, rattling U.S. stocks and pushing investors away from higher-risk assets. The retreat extended into crypto assets, with Bitcoin falling below $85K and reflecting the overall risk-off sentiment.

Extreme Caution Sweeps Markets as Equities and Crypto Dive image 0 Extreme Caution Sweeps Markets as Equities and Crypto Dive image 1

In brief

  • U.S. markets experienced a sharp sell-off with the S&P 500 losing roughly $2 trillion in just a few hours.
  • Investor sentiment dropped dramatically as the Crypto Fear and Greed Index fell to 14 signaling extreme caution.
  • Analysts noted the drop reflected shifting sentiment and defensive positioning rather than a single news event.

Equities and Crypto Hit by Sharp Reversals

The Kobeissi Letter reported on X that U.S. markets experienced their fastest reversal since Liberation Day, with the S&P 500 losing roughly $2 trillion in market value within five hours. The index closed nearly 4% lower, while Nvidia—despite a recent earnings-driven surge—also dropped sharply, finishing more than 8% down.

Wider market signals indicated mounting concern, with the Crypto Fear and Greed Index falling to 14, signaling extreme caution. The move was striking because the S&P 500 remained just 6% below its recent high. Despite relatively modest price declines, investor confidence had eroded quickly, showing how sentiment can sour even when markets hover near their peaks.

Crypto faced its own pressure as liquidations climbed to roughly $829 million. High leverage amplified the decline, pushing Bitcoin down to around $82,000—its lowest level since mid-April—showing how sensitive the market is to sudden moves.

Market Mechanics and Leverage Amplify the Downturn

Giving details on what could have triggered the downturn, analysts at The Kobeissi Letter noted that the only notable update during the session was a headline confirming the release date of the US November jobs report. While the drop accelerated afterward, the analysts suggested the headline was only partially responsible. They viewed the move as largely reflecting internal market dynamics and broader selling pressure rather than a single news event.

Kobeissi also pointed to the elevated use of leverage, particularly within crypto markets. While earlier declines had been concentrated in crypto alone, Thursday’s drop was far more synchronized. With liquidations now approaching $1 billion per day, the effect has become increasingly amplified, intensifying the emotional swings driving market behavior.

Tim Sun, senior researcher at HashKey Group, said the drop did not seem tied to any major news event . He explained that the market’s weakness was driven by shifting sentiment and tighter liquidity. Traders had positioned defensively, buying put options ahead of Nvidia’s earnings and the upcoming US labor data, which amplified selling as the market reacted.

Sun added that “trend-following strategies further amplified the decline as prices subsequently broke through key technical levels.

Fed Moves and Data to Influence Crypto Markets

Looking ahead, Chung from Presto noted that if strain within the private-credit market begins to spread, it could push the Federal Reserve toward supporting a rate cut at the December Federal Open Market Committee meeting, which would likely improve the outlook for risk-focused assets, with crypto expected to benefit as well. Despite this, expectations for a December rate cut have currently dropped to 35%.

Tim Sun added that a more favorable market tone would depend on whether upcoming economic data supports easing. While a rate cut could help calm markets, he noted that a sustained rebound would still require broader macroeconomic support.

With confidence shaky, many expect uneven trading as investors adjust their positions heading into the final weeks of the year.

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Earn new token airdrops
Lock your assets and earn 10%+ APR
Lock now!

You may also like

Buyers Struggle to Maintain FILUSDT's $1.85 Level Amid Key Turnaround Attempt

- FILUSDT traders focus on $1.85 support as key reversal level amid bullish momentum signs. - Technical analysis shows RSI nearing oversold territory and WTI-like support patterns reinforcing potential rebound. - Successful defense of $1.85 could trigger $3.90 target, with $2.50-$2.70 zone acting as next critical validation point. - Broader crypto optimism and risk-on market conditions further support potential upward trajectory for FILUSDT.

Bitget-RWA2025/11/23 04:50
Buyers Struggle to Maintain FILUSDT's $1.85 Level Amid Key Turnaround Attempt

G20 Crypto Agreement Strikes a Balance Between Fostering Innovation and Managing Worldwide Risks

- G20 leaders agreed to harmonize global crypto regulation, prioritizing stablecoin and DeFi standards to balance innovation with systemic risk mitigation. - The declaration includes a Critical Minerals Framework to ensure sustainable resource-driven growth in Global South nations while securing crypto infrastructure supply chains. - Market shifts show USDC overtaking USDT in on-chain activity due to regulatory clarity, while DeFi faces $12B liquidity stagnation from fragmented protocols. - Regulatory scru

Bitget-RWA2025/11/23 04:50
G20 Crypto Agreement Strikes a Balance Between Fostering Innovation and Managing Worldwide Risks

Bitcoin Updates: Hybrid Investment Strategies Drive Surge in Bitcoin Purchases Amid Ongoing Market Slump

- Cardone Capital buys 185 BTC for $15. 3M at $82,500/coin, expanding its real estate-crypto hybrid portfolio amid crypto market weakness. - Bitcoin falls below $90K for first time in seven months as U.S. ETFs lose $3.79B in November outflows, with BlackRock's IBIT accounting for 63%. - Grant Cardone's hybrid model contrasts with pure-play crypto treasuries, using real estate cash flow to fund Bitcoin accumulation and claiming $125M in year-one EBITDA. - Market fears a prolonged bear market as Bitcoin drop

Bitget-RWA2025/11/23 04:34
Bitcoin Updates: Hybrid Investment Strategies Drive Surge in Bitcoin Purchases Amid Ongoing Market Slump

Bitcoin Updates Today: The Future of Bitcoin in 2026 Hinges on Federal Reserve's Actions on Inflation

- Bitcoin's 2026 recovery depends on Fed inflation policy linked to CPI, PPI, and PCE metrics. - Persistent CPI/PCE inflation above 2% delays rate cuts, increasing Bitcoin's opportunity cost as non-yielding asset. - PPI input cost trends influence manufacturing pricing, prolonging inflation risks for Bitcoin's bearish environment. - PCE's alignment with consumer behavior shifts could accelerate Fed rate cuts, boosting Bitcoin's appeal as monetary easing hedge. - Housing/energy inflation volatility and Fed

Bitget-RWA2025/11/23 04:34
Bitcoin Updates Today: The Future of Bitcoin in 2026 Hinges on Federal Reserve's Actions on Inflation