Bitcoin and Ethereum prices drop following US tech market decline, leading to $300 million in losses
The cryptocurrency market saw a 5% decline in the past 24 hours, mirroring a significant drop in major US stock shares, leading to a global market downturn. Bitcoin’s value decreased by nearly 3%, dropping from $67,000 to approximately $64,000, while Ethereum experienced a more substantial decline of almost 8%, falling from $3,400 to around $3,100. Other prominent digital assets like BNB, Solana, Dogecoin, and Toncoin also faced notable losses, each dropping by more than 5%, according to data from CryptoSlate.
Analysts noted that the US stock markets had their worst day since 2022 on July 24, primarily driven by a massive sell-off in tech companies that had been benefiting from the artificial intelligence boom. Reports indicated that over $1 trillion was wiped out from the market due to this sell-off. The Nasdaq Composite index plummeted by 3.6%, marking its worst performance in two years. The S&P 500 also fell by 2.3%, its most significant one-day decline in over a year, and the Dow Jones Industrial Average decreased by 1.3%.
The downturn in the market was further exacerbated by substantial outflows from Ethereum exchange-traded fund (ETF) products. Over the past day, the ETH-based ETFs experienced outflows exceeding $133 million, with Grayscale Ethereum Trust (ETHE) alone witnessing $326.86 million in net outflows, as reported by CryptoSlate Insight.
Markus Thielen, the founder of 10x Research, commented on the situation, stating, “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.”
The broad red market scenario resulted in significant losses for crypto traders speculating on digital asset prices, as per Coinglass data. Over 73,000 traders faced liquidations totaling around $300 million, with long traders incurring losses of approximately $267 million, while bearish traders were liquidated for less than $30 million during the reporting period. Among all assets, Ethereum and Bitcoin traders suffered the highest liquidations, with totals reaching about $102 million and $83 million, respectively.
In conclusion, the recent market downturn, coupled with the sell-off in major US stock shares, led to significant losses for traders across various digital assets, highlighting the volatility and interconnectedness of global financial markets.
