Tech
Bitcoin, Ethereum Crash After US Tech Selloff, Causing $300M in Losses
The cryptocurrency market has fallen by about 5% in the past 24 hours, in line with the significant decline in major US stocks, which has sent global markets into a tailspin.
Bitcoin the price dropped by nearly 3%, from $67,000 to around $64,000, while Ethereal took an even steeper decline, falling nearly 8% from $3,400 to around $3,100.
Other major digital assets, including BNB, SolanaAccording to data from CryptoSlate, Dogecoin and Toncoin also suffered notable losses, dropping by more than 5% each.
Analysts have pointed out that U.S. stock markets suffered their worst day since 2022 on July 24, driven by a massive sell-off in tech companies that have benefited from the artificial intelligence boom. Reports have revealed that more than $1 trillion has been wiped out of the market due to this situation.
The Nasdaq Composite Index fell 3.6%, its worst performance in two years. The S&P 500 fell 2.3%, its biggest daily decline in more than a year, and the Dow Jones Industrial Average fell 1.3%.
In particular, the significant outflows from Ethereum Exchange-Traded Fund (ETF) Products further contributed to the market downturn. ETH-based ETFs saw outflows of over $133 million on the day, with Grayscale Ethereum Trust (ETHE) alone seeing $326.86 million in net outflows, as reported by CryptoSlate Insight.
Markus Thielen, founder of 10x Research, said:
“The rally toward the Ethereum ETF launch is finally over. All cryptocurrency prices accelerated toward the launch, only to turn into a sell-the-news trading opportunity.”
Red Market Triggers About $300 Million in Liquidation
Coinglass data shows that the generally negative market situation has caused significant losses for cryptocurrency traders who speculated on the prices of digital assets.
According to dataOver 73,000 traders faced liquidations totaling around $300 million, with the majority of losses suffered by long traders who bet on price increases. This cohort of traders lost around $267 million, while bearish traders were liquidated for less than $30 million during the reporting period.
Among assets, Ethereum and Bitcoin traders saw the highest liquidations, with totals reaching around $102 million and $83 million, respectively.