Bitcoin and Ethereum Prices Plunge Amid Crypto Market Anxiety
Cryptocurrency markets experienced a downturn on Monday amid fears of increased selling pressure looming over Bitcoin. In the last 24 hours, Bitcoin (BTC) saw a 3% decline to $58,172, while Ethereum (ETH) dropped 2.9% to $2,584. Polkadot (DOT) and Solana (SOL) also slipped by 2%.
Among the various cryptocurrencies, Conflux (CFX) stood out with a 4.5% gain, emerging as the top performer within the top 100 cryptocurrencies. Toncoin (TON) followed with a 3% increase, and Monero (XMC) also saw a rise of 4%. Conversely, Dogwifhat (WIF) experienced the most significant decline, plummeting by 7%. Helium (HNT) fell by 6%, and Ondo (ONDO) dropped by 5.4%.
Recent reports indicated that the U.S. government transferred nearly $600 million worth of Bitcoin to Coinbase on August 15. This move suggests that the Bitcoin may either have been sold or are intended for sale, as highlighted by Scott Johnsson, the general counsel at Van Buren Capital.
Data from 21.co revealed that the US government holds 203,222 BTC valued at $11.9 billion. This stash includes 69,369 BTC seized from Silk Road, 94,643 BTC seized from a hacker who exploited Bitfinex, and 51,326 BTC seized from James Zhong, who hacked Silk Road.
The ‘Crypto Fear and Greed Index’ by Alternative.me, which measures market sentiment on a scale from 0 to 100, currently stands at 28, indicating a prevailing sense of “fear” among investors.
In the past 24 hours, 39,835 traders faced liquidation, resulting in total liquidations amounting to $95.01 million. Among these, $18 million came from long Bitcoin positions, as reported by CoinGlass.
Bitcoin exchange-traded funds (ETFs) outperformed Ethereum ETFs, with spot Bitcoin ETFs recording a net inflow of $32.4 million from August 12 to August 16. In contrast, Ethereum ETFs experienced net outflows totaling $14.1 million during the same period.
James Butterfill, the head of research at CoinShares, reported minor inflows into digital asset investment products last week, totaling $30 million. Ethereum saw inflows of $4.2 million, while Solana faced a record outflow of $39 million, reflecting a decline in trading volumes of memecoins that Solana heavily relies on.
In the broader financial landscape, the U.S. dollar weakened against the Japanese yen following disappointing housing data. The dollar declined by 0.96% to 147.87 yen after reaching a two-week high of 149.40. Data from the U.S. Census Bureau and the Department of Housing and Urban Development indicated a decrease in new residential construction activity for July 2024.
Meanwhile, in traditional markets, the S&P 500 and Nasdaq registered modest gains of less than 1% as investors anticipated insights from Federal Reserve Chair Jerome Powell’s upcoming speech on Friday regarding potential rate adjustments. Additionally, the release of the Fed’s latest meeting minutes is scheduled for Wednesday.
