– Capital inflows drop from $60B to $10B in one month – Fear and Greed Index remains at 20 indicating market uncertainty – Bitcoin loses leadership with dominance declining amid heavy selling – Market shifts to mid-cap assets as large caps become safer options

Market Overview

Capital inflows in the crypto market dropped sharply from $60 billion to $10 billion between October and November.
The Fear and Greed Index remains at 20, indicating investor fear due to market uncertainty and Bitcoin's brief dip to $80K.

Current Market Dynamics

Santiment reports that while the previous market bounce appeared strong, supporting signals have faded, leading to a cautious market environment.
Ethereum faces resistance around $3,200-$3,250, with potential for a pullback if rejected at this level.
Large Bitcoin wallets are reducing accumulation, whereas smaller wallets increase theirs, suggesting market fragility.
Stablecoin yields near 4% show low leverage demand, indicating a lack of strong market conviction.

Bitcoin's Position

Bitcoin lost its leadership position after breaking crucial support levels, leading to a shift towards mid-cap assets.
Heavy BTC selling has decreased Bitcoin's dominance, with investors currently showing weak conviction.
For Bitcoin to regain leadership, it needs sustained dominance growth; otherwise, the market remains driven by selective asset rotation.