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Crypto Market Turmoil: Bitcoin and Ethereum Prices Plummet, Over $170 Million in Longs Liquidated

Aug 28

2 min read

The cryptocurrency market experienced a significant downturn as Bitcoin and Ethereum prices plummeted, leading to over $170 million in long-position liquidations. This sudden drop has left investors reeling and speculating about the future of these digital assets.

Key Takeaways

  • Bitcoin fell below $59,000, a drop of more than 3%.

  • Ethereum's price fell below $2,500, marking a significant decline.

  • Over $170 million in long positions were liquidated in a single hour.

  • Other cryptocurrencies like Solana, XRP, and Dogecoin also saw declines.

Bitcoin's Sharp Decline

Bitcoin's price plunged below $59,000 late Tuesday, reaching lows not seen in a week. This more than 3% fall triggered over $65 million in long-position liquidations. The decline followed a solid rise above $63,000 on Friday, spurred by remarks from U.S. Federal Reserve Chairman Jerome Powell signaling an interest rate cut next month. However, the price stumbled, leading to the latest drop.

Ethereum's Significant Drop

Ethereum also faced a substantial decline, falling below $2,500. This drop led to over $52 million in long-position liquidations. Ethereum's market cap fell to $299.58 billion, down 10.75% on the day. The price had traded in a range of $2,396.02 to $2,699.73 in the previous 24 hours.

Broader Market Impact

The price of Solana (SOL) dropped more than 6% for the day, while tokens like XRP and Dogecoin (DOGE) saw dips of more than 5% over 24 hours. The U.S. stock markets closed mostly flat for the day, indicating no specific trigger for the quick shift in cryptocurrency prices.

Analyst Insights

Some analysts have pointed to the recent state of Bitcoin price movements as achieving “equilibrium,” with a report from crypto analytics platform Glassnode noting that it might precede a period of “heightened volatility.” Fairlead Strategies warned of a “seasonally weak period in September,” suggesting another two months of corrective price action.

Ethereum ETF and Whale Activity

Ethereum faced additional pressure from ETF investors and whales. ETH ETFs extended their outflow streak to eight consecutive days of net outflows. Whales also dumped ETH heavily, contributing to the price decline. Ethereum co-founder Vitalik Buterin was accused of not believing in ETH as a store of value, although he refuted these claims.

Future Outlook

The cryptocurrency market remains volatile, and the recent downturn has left investors cautious. Analysts suggest that the market could see further declines before stabilizing. Investors are advised to stay informed and consider the risks before making any investment decisions.

Sources

Aug 28

2 min read

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