Bitcoin and Ethereum plunge after US tech sell-off, sparking $300 million in losses Bitcoin and Ethereum plunge after US tech sell-off, sparking $300 million in losses
The strong outflows from spot Ethereum ETFs also contributed to the downward market pressure.
2 min read
Updated: Jul. 25, 2024 at 1:10 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
The crypto market declined by around 5% in the last 24 hours, aligning with a significant drop in major US stock shares, which sent global markets downward.
Bitcoin’s price fell almost 3%, falling from $67,000 to around $64,000, while Ethereum experienced an even steeper decline, dropping nearly 8% from $3,400 to about $3,100.
Other major digital assets, including BNB, Solana, Dogecoin, and Toncoin, also faced notable losses, each falling by more than 5%, according to CryptoSlate’s data.
Analysts highlighted that the US stock markets faced their worst day since 2022 on July 24, driven by a massive sell-off in tech companies benefiting from the artificial intelligence boom. Reports revealed that over $1 trillion was wiped out from the market due to this situation.
The Nasdaq Composite index dropped 3.6%, marking its worst performance in two years. The S&P 500 fell 2.3%, its most significant one-day decline in over a year, and the Dow Jones Industrial Average decreased by 1.3%.
Notably, the substantial outflows from Ethereum exchange-traded fund (ETF) products further contributed to the market’s downturn. Over the past day, the ETH-based ETFs saw outflows exceeding $133 million, with Grayscale Ethereum Trust (ETHE) alone experiencing $326.86 million in net outflows, as reported by CryptoSlate Insight.
Markus Thielen, the founder of 10x Research, said:
“The rally into the Ethereum ETF launch is finally over. All crypto listings have seen a ramp-up into the launch, only to become a sell-the-news trading opportunity.”
Red market triggers around $300 million in liquidation
Coinglass data shows that the broad red market situation resulted in significant losses for crypto traders speculating on the prices of digital assets.
According to the data, over 73,000 traders faced liquidations totaling around $300 million, with most of the losses suffered by long traders betting on price increases. This cohort of traders lost approximately $267 million, while traders with bearish sentiments were liquidated for less than $30 million during the reporting period.
Across assets, Ethereum and Bitcoin traders experienced the highest liquidations, with totals reaching about $102 million and $83 million, respectively.
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Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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Bitcoin, a decentralized currency that defies the sway of central banks or administrators, transacts electronically, circumventing intermediaries via a peer-to-peer network.
Ethereum
$3,142.19
Ethereum is a decentralized, open-source blockchain platform that enables the creation of smart contracts and decentralized applications (DApps).
Solana
$241.837
Solana is a high-performance blockchain platform that utilizes a unique consensus algorithm called “Proof of History” to achieve fast transaction speeds and low fees.
Grayscale Investments
Established in 2013 by Digital Currency Group, Grayscale Investments is a trusted authority on digital currency investing and cryptocurrency asset management.
The Grayscale Ethereum Trust (ETHE) by Grayscale is an investment vehicle designed to offer investors exposure to Ethereum, one of the leading cryptocurrencies by market capitalization.
Markus Thielen is currently the Head of Research & Strategy at Matrixport, a one-stop digital assets financial services platform where users can invest, trade, and leverage crypto assets.