The crypto market has seen a significant downturn today. Bitcoin (BTC) price has fallen to $64,000, and Ethereum (ETH) has dropped to $3,100. This decline has spread to many altcoins, reflecting a broader market trend.
Top Reasons for the Market Dump
Impact of Mt. Gox Repayments
Investor anxiety has surged across the market. The decline in Bitcoin and Ethereum prices coincides with Mt. Gox's repayments to creditors, which have reached nearly 17,000 BTC transfers to date. This large distribution has added pressure on the market.
Source: Arkham Intelligence
Decline in Global Crypto Market Cap
The global crypto market cap has decreased by 0.98%, now valued at $2.37 trillion. Additionally, total crypto volume over the past day has seen a 23.24% decline, falling to $67.38 billion.
Ethereum Faces Sell-the-News Pressure
Ethereum's price has taken a hit due to investors selling off following the spot Ethereum ETF approval. Analysts predict this downtrend could continue for another two weeks.
As of writing, Ether was trading at $3,182.30, down 7.27% in the last 24 hours.
Whale Activity and Market Impact
A significant Ethereum whale recently dumped 10,000 ETH on Kraken, making a $173 million profit. This move has added pressure to Ethereum and the broader crypto market.
Surge in Ethereum Liquidations
Data from Coinglass shows Ethereum liquidations have surpassed Bitcoin's, with $97.8 million in ETH liquidations compared to $80.9 million for BTC. Most ETH liquidations have been long positions, indicating strong selling pressure.
Broader Market Pressure
Mt. Gox's ongoing distributions are affecting the overall crypto market. Analysts at 10x Research note that if this trend continues, the market may struggle to rally without additional support.
Will Ethereum's Price Reverse Soon?
Crypto analyst Michael van de Poppe suggests that Ethereum may see a reversal amid outflows from the Grayscale Ethereum Trust. He predicts ETH might decline for another two weeks before resuming an upward trend. Ethereum is expected to find support around $3,150 before potentially reaching new highs.
The current bearish trend in the crypto market highlights the volatility and the external factors influencing it, such as major sell-offs and repayments from significant players like Mt. Gox. Investors should stay informed and be prepared for further fluctuations in the coming weeks.
Also Read
List of Top Three Altcoins Set To Skyrocket
Peter Schiff Warns of Crypto Market Crash: FED’s Action Under Scrutiny
Ethereum ETF Inflow Shifts Market: ETH Price Drops to $3,097
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