Ethereum Hits Lowest Point Since 2024, Bitcoin Declines with $272 Million in Liquidations

Ethereum has recently experienced a significant drop in price, hitting its lowest point in 2024 with a nearly 8% decline over a 24-hour period, as reported by CoinGecko. The second-largest cryptocurrency fell to $2,193 on Friday, a level not seen since the previous year.

In the past week, Ethereum has seen a 13% decrease in value, performing worse than many other major cryptocurrencies and tokens.

Bitcoin has also faced a notable decline, dropping to $52,690 before recovering slightly to $53,516 after a 5% decrease in the last day. This downward trend is partly attributed to investors swiftly withdrawing funds from newly-approved spot Bitcoin exchange-traded funds (ETFs).

This recent dip in prices mirrors a broader market downturn that occurred on August 5.

The overall market capitalization of the entire cryptocurrency sector now stands at $1.96 trillion, marking a 6% decline over the past 24 hours and falling below the $2 trillion mark for the first time since February.

Data from CoinGlass reveals that over $272 million worth of cryptocurrency positions were liquidated in the last 24 hours. Of this total, $221 million in long positions, which bet on asset price increases, were closed out.

Investors have been selling off “risk-on” assets like cryptocurrencies and equities following weaker-than-expected data from the U.S. on Friday, which has caused turbulence in global markets.

The U.S. stock market has had its worst week since March 2023, with tech stocks experiencing significant sell-offs.

All eyes are now on the Federal Reserve, with investors anticipating a potential interest rate cut from the central bank. However, the extent of this rate adjustment remains uncertain. The Fed, under the leadership of Chair Jerome Powell, had previously raised interest rates to a 23-year high to combat inflation stemming from the Covid-19 pandemic.