Crypto Bloodbath: $500M Liquidated as Bitcoin & Ethereum Plunge

Bitcoin (BTC) and Ethereum (ETH), the two leading digital currencies, began the week on a downward trend, pulling back from recent price peaks.

Data compiled by CryptoSlate indicates a Bitcoin price decline exceeding 3% in the last 24 hours. The price has dipped from levels above $118,000 to approximately $115,303 at the time of this report.

Ethereum experienced a similar correction, falling by approximately 4% to a price of $4,270, halting its run of significant upward momentum.

This bearish sentiment was reflected across the wider cryptocurrency market. The top 10 cryptocurrencies by market capitalization, which include
XRP,
Binance Coin (BNB),
Solana,
Dogecoin, and
Cardano, each recorded average losses of around 4%.

In a note distributed to investors on August 18, analysts at
Matrixport provided insights on the current market landscape. They highlighted that Bitcoin’s breach of the long-standing downtrend line, which had previously served as support, was an unexpected development.

The financial analysis firm suggests that this sudden retraction may lead to Bitcoin prices testing the $112,000 level. This potential price dip is anticipated ahead of the US Federal Reserve’s upcoming rate decision in September.

They further stated:

“From a technical perspective, Bitcoin currently occupies a zone of uncertainty between $112,000 and $117,292. This situation provides traders with two distinct strategies: capitalize on upward momentum with a breakout, or patiently accumulate holdings closer to the $112,000 mark, depending on which scenario materializes first.”

Meanwhile, Matrixport analysts suggest that the Jackson Hole Economic Symposium for this year is unlikely to give any significant market signals. They described the event as being more like a discussion event instead of a catalyst.

Consequently, the market’s focus will shift to the Sept. 17 FOMC meeting, as it is expected to offer more defined guidance.

Ethereum Traders See Losses Exceeding $200 Million

The unforeseen downturn triggered a significant surge in liquidations across the cryptocurrency exchanges, catching numerous traders off guard.

Data sourced from CoinGlass reveals that approximately $534 million in leveraged positions were forcibly closed, impacting the trading accounts of over 127,000 individuals.

Long positions suffered the greatest impact, accounting for losses of $447 million, while short positions incurred losses totaling approximately $86 million.

Ethereum traders were hit particularly hard, with total liquidations reaching $212 million, nearly double the $111 million lost by Bitcoin traders. Traders involved with Solana, XRP, and Dogecoin also experienced substantial losses, with liquidation values of $31 million, $18 million, and $17 million, respectively.

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