The crypto market nosedive
|Market picture
The crypto market took a nosedive, losing almost 4% of its market cap over the last 24 hours. Without Bitcoin's growth, altcoins, which had been driving the market upwards in previous days, found themselves on sale. Forty-eight of the top 100 altcoins are losing double-digit rates over 24 hours, while only three are growing.
The first cryptocurrency has been facing both a price drop and an outflow from ETFs over the past couple of days, while Ethereum continued to attract new capital to funds. Meanwhile, BTC remains stuck in a narrow range. At $117.3K on Thursday morning, it was on its way to the lower limit of $116K. A reversal to growth will be needed to stop the build-up of pessimism for the entire crypto market, where corrective sentiment is intensifying. If we look only at BTCUSD, a decline to $111K — the area of previous peaks — fits well into the pattern of a corrective pullback.
News background
According to LVRG Research, institutional investors remain optimistic about Ethereum. There is an outflow of funds from Bitcoin to ETH, which often happens before a surge in altcoin growth.
Bitwise notes that the key driver of the Ethereum rally is high demand from ETFs and corporate treasuries. Since mid-May, Ethereum ETFs have attracted more than $5 billion in investments. Companies such as Bitmine and SharpLink bought 2.83 million ETH for $10 billion. During the same period, the network issued only 88,000 ETH.
According to Lookonchain, there is significant activity in the crypto market from large BTC and Ethereum holders, which may be due to a desire to lock in profits after price increases. EmberCN confirms the flow of large batches of coins to Binance, which are probably for sale.
The BNB cryptocurrency has updated its historical highs made last December and exceeded $800, taking fifth place in the CoinMarketCap ranking and pushing Solana aside. The growth may have been facilitated by the inflow of institutional capital into ETF products.
Upexi announced the acquisition of 100,000 Solana coins for $17.7 million at an average price of $176.77. Upexi's total reserves reached 1,818,809 SOL ($331 million), acquired for $273 million.
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