by Bitcoin’s Decline: A Major Sell-Off Continues
In a turbulent turn of events, Bitcoin has dipped below the $60,000 mark during early U.S. trading hours on Sunday. This significant drop marks the continuation of a market sell-off that has persisted for four consecutive days. According to CoinGecko, BTC has faced a 4% decline in the past 24 hours, reaching a three-week low at $59,400. The bearish sentiment has also hit other major cryptocurrencies hard.
Major Altcoins Experience Significant Losses
Leading the downturn, Solana’s SOL and Dogecoin (DOGE) have suffered losses exceeding 9%. Other prominent tokens like BNB Chain’s BNB, XRP, and Cardano’s ADA have also seen declines of at least 6%. In comparison, Toncoin (TON) has managed to limit its losses to a more modest 1.8%.
Ethereum’s Struggles Amid ETF Launch
Ethereum (ETH) has not been immune to the market turmoil, falling below $2,900 and erasing all gains from its earlier surge to $3,400 in July. This downturn comes despite the recent approval of spot ETH exchange-traded funds (ETFs) for trading in the U.S. However, these products have recorded net outflows on six out of the nine trading days since their launch, with a total of $510 million in outflows, according to data from SoSoValue.
Market Indices Reflect Broad Decline
The CoinDesk 20 (CD20), a liquid index monitoring the largest tokens (excluding stablecoins), has also reflected this downward trend, dropping by 5.73%. The bearish sentiment in the market is palpable as traders reassess their positions amid ongoing volatility.
Futures Bets and Liquidations Impact Traders
As the market continues to fluctuate, bullish futures bets have faced substantial losses, with nearly $200 million wiped out in the past 24 hours. Data from CoinGlass indicates that more than 97,000 traders were liquidated due to sudden market movements. Leading the losses were Ethereum longs, which saw a loss of $55 million, followed closely by Bitcoin longs at $43 million.
Geopolitical Tensions and Market Sentiment
Some traders have expressed caution regarding a potential drop in Bitcoin’s price to the $55,000 level, a speculation that was highlighted earlier this week. Ongoing geopolitical tensions in the Middle East and a general dampening of sentiment for risk assets, including technology stocks, are contributing factors to the current market instability.
As the cryptocurrency market remains unpredictable, traders and investors are advised to stay informed and consider the latest developments before making any significant financial decisions.
