Global Crypto Market Crashes Amidst Weakening Risk Appetite

The global crypto market is experiencing a significant downturn, with Bitcoin's price falling below the crucial $80,000 threshold. This decline has been accompanied by the weakening of other assets, including global stocks, which dropped by over 1% on Friday.

The rise in inflation and the ongoing risk-off sentiment are also contributing factors to the crypto market crash. The US Treasury yield has risen to over 5.05%, and global bond yields continue to soar.

Data compiled by CoinGlass shows that the 24-hour volume in the crypto industry tumbled by 21% to $170 billion in the last 24 hours, while futures open interest dropped by over 2% to $128 billion. Liquidations jumped by 80% to $580 million as many bullish traders were caught off guard by the ongoing reversal.

The ongoing ETF outflows and falling volume and futures open interest are signs that demand is fading, leading to a decline in prices. Bitcoin's weak technicals, including its failure to move above the 200-day moving average and the formation of a rising wedge pattern, also contribute to the bearish sentiment.