What happened

Bitcoin slipped back under the 100k mark on November 15 as a sharp sell off in US stocks spilled over into digital assets. The crypto Fear and Greed Index dived to 10, a level that signals extreme fear, while the total market value of cryptocurrencies lost almost 6 percent in a week. Large listed crypto firms also felt the stress, with some reporting fresh quarterly losses and facing renewed pressure from investors.

Why it matters for markets

The move shows how tightly crypto is now linked to global risk sentiment. When equities fall and investors question the outlook for US growth and Federal Reserve policy, highly leveraged positions in Bitcoin and altcoins are often the first to be cut. Outflows from Bitcoin ETFs and a drop in DeFi total value locked point to a broad desire to reduce risk, not just a quick intraday flush of speculative positions.

FX and macro angle

For currency traders, panic in crypto is a signal that risk appetite is deteriorating at the margin. It tends to support the dollar and other safe haven assets when fear peaks, especially if it comes on top of uncertainty about US data releases and the timing of the next Fed rate cut. At the same time, growing institutional interest in regulated crypto products means that stress in this corner of the market can feed back into equity indices and credit spreads.

What traders are watching next

In the coming days, traders will watch whether Bitcoin can hold above recent support levels, whether ETF outflows begin to stabilise and whether DeFi activity can recover after recent security breaches. A stabilisation in macro headlines and clearer guidance from central banks could quickly ease the pressure. If fear stays elevated, however, the current episode may extend into a deeper and more disorderly repricing across risky assets.