Aaryamann Shrivastava
FXStreet
- The crypto market capitalization has declined below the $1 trillion mark for the first time in six months.
- Large deposits to exchanges have been noted by trading firms, including Jump Trading and Wintermute.
- Arbitrum also became a target of the whales as millions of ARB were sold over the past 24 hours.
The crypto market has been witnessing a drawdown for the past month, and the past 24 hours have added to the same. As FUD surrounding Solana and the FTX hearing injected fear into the market, investors reacted with panic selling. This led to a phenomenon not observed in almost six months now.
The crypto market falls below a crucial level
The total value of the crypto market slipped below the $1 trillion mark as on the last day, nearly $29 billion was wiped out. The 2.84% decline in the market cap brought the combined value of all cryptocurrencies to a little over $987 billion.
Total crypto market capitalization
The present value of the crypto market was this low back in March this year and marks a six-month low. Even though the investors’ sentiment was of fear, the crash that occurred towards the end of August injected severe bearishness in the market, which met the FUD regarding the SOL and FTX bankruptcy hearing.
Beyond traders and investors, many large trading firms also jumped on the bandwagon and offloaded millions of dollars worth of crypto assets. According to analysis firms Arkham Intelligence and Lookonchain, the likes of Jump Trading, Abraxas Capital Management and Wintermute Trading have deposited over $30 million worth of Bitcoin, Ethereum and Arbitrum on various exchanges.
Some of the largest exchange deposits during today’s carnage:
— Arkham (@ArkhamIntel) September 11, 2023
-14K ETH ($22.5M) from Abraxas Capital Management to Bitfinex (two transactions)
-236 BTC ($5.9M) from Jump Trading to Binance
Track more movements with Arkham.https://t.co/f63pY4QYFk pic.twitter.com/ufCnQiYJWY
This whale behavior added to the bearish impact experienced by the market.
Largest longs liquidation in three weeks
The last 24 hours also marked a milestone in the Futures market, where long contracts were liquidated as a result of the crash. According to data from Coinglass, close to $150 million worth of long liquidations was observed, which is the highest since the crash of mid-August, which resulted in almost $1 billion worth of long contracts being liquidated.
Crypto market long liquidations
This three-week high marks losses for investors that would take some time to recover, looking at the current bearish sentiment of the market.
Like this article? Help us with some feedback by answering this survey:
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Pro-crypto French Hill selected as Chairman of the House Financial Services Committee
Republicans selected French Hill as the new Chairman of the House Financial Services Committee. Hill is a crypto supporter and spearheaded the FIT21 bill for crypto regulations. French Hill will be replacing Chair Patrick McHenry, who is retiring from office.
Ethereum could see new all-time high above $5,000, on-chain data signals bullish momentum
Ethereum is up 1% on Thursday as it aims to tackle the selling pressure near the $4,000 psychological level. On-chain data shows that ETH has begun seeing increased bullish momentum, which could push its price to a new all-time high above $5,000.
Crypto Today: Bitcoin price tops $102K as Trump’s firm acquires Ethereum and Chainlink
Cryptocurrency market valuation broke $3.5 trillion Thursday, up 9.4% since Tuesday's market crash halt. In the last 24 hours, 104,700 traders liquidated $172.7 million in long contracts, accounting for 58% of the $298.5 million total liquidations.
Shiba Inu Price Prediction: SHIB set for $0.00004000 breakout as ETH leads market recovery
Shiba Inu price has rebounded 22% from its 14-day low of $0.00002400 recorded during the crypto market dip on Tuesday. With the Ethereum ecosystem attracting rapid capital inflows, is SHIB on the verge of a major breakout?
Bitcoin: BTC reclaims $100K mark
Bitcoin (BTC) reclaimed the $100K level, trading near $100,100 on Friday after a recent decline earlier this week. The recent pullback in BTC was mostly due to high-leverage traders and some holders booking profits. Despite Microsoft’s rejection of adding Bitcoin to the company’s balance sheet, institutional demand remained strong, recording a total inflow of $1.72 billion until Thursday.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.