Crypto Fear Index Hits 10, Lowest Since July 2022—What Next?
After Wall Street's Friday slide left major indices down over 1.6%, the sell-off accelerated through Asian trading hours.
The highest wipeout was $30.60 million on a Hyperliquid BTC investment, with Bitcoin liquidating $242.19 million and Ethereum $169.06 million.
Market pricing for a December Federal Reserve rate decrease fell to 40% from above 60% the week before, sending investors toward cash and away from risk assets.
After splashy ETF Debut, XRP Whales Sell Nearly 200M Tokens
The selling comes at a crucial time for XRP, the fourth-largest cryptocurrency with a $136 billion market worth.
Its community has been celebrating a years-long legal triumph over the US Securities and Exchange Commission, which in 2023 prompted a federal judge to determine that XRP is not a security on exchanges.
That ruling helped institutions return to XRP and set the way for Thursday's Nasdaq launch of the Canary Capital XRP ETF, the year's strongest ETF debut with $58 million in first-day trading activity and $250 million in inflows.
However, whales seem unaffected by the milestone. XRP fell 4.3% in 24 hours from $2.31 to $2.22, producing a lower-highs pattern that implies near-term negative pressure.
Digital Assets As 3-Week Rout Drains $3.2B, $2B Outflows
According to CoinShares' Monday report, the sell-off was the third consecutive week of withdrawals, totaling $3.2 billion.
After severe price falls in major cryptocurrencies, digital asset ETPs' total assets under management fell 27% from $264 billion to $191 billion.
The slump was caused by monetary policy uncertainty and aggressive selling by crypto-native whale wallets, analysts said.
U.S. products lost $1.97 billion, the majority of outflows.
Switzerland and Hong Kong trailed with $39.9 million and $12.3 million outflows.
Dormant Cardano wallet loses millions in token switch error
Due to insufficient liquidity, a dormant Cardano wallet completed a huge cryptocurrency swap that cost millions of dollars, according to on-chain data seen by blockchain investigator ZachXBT.
The wallet, addr1qy…d5r4x534, made its first transaction since September 2020, exchanging a large amount of Cardano tokens for a stablecoin. The holder received much less than the tokens' estimated market value, according to blockchain statistics.
The massive order distorted the stablecoin's local price because it went through an illiquid pool, data showed. The stablecoin briefly rose to an inflated on-chain price before correcting back to its peg, while the wallet holder received much less than planned.
Volatility drives billions out of digital assets
Industry data shows $2 billion in outflows from digital asset investment products last week, the most since February. The outflows extended a three-week fall to $3.2 billion due to monetary policy uncertainty and significant bitcoin holdings selling.
