If the previous week was a solid one for crypto traders, the current one is completely the opposite. It’s the beauty of being part of the crypto world.
The total market cap is down 6% today and is now below $2.1T. What’s even more concerning is that Bitcoin lost the crucial support and big psychological level at $60k. At press time, the BTC price is down 6% and trading around $59,300.
Ethereum holders are even less happy since ETH lost 8% today and is now trading below $2,500.
According to a report by LookOnChain, 87,405 traders were liquidated for $318.46M in the past 24 hours. A whale was liquidated for $12.67M on an ETH/BTC long position, while another whale was liquidated for $12.6M on a BTC long position.
The price of $BTC dropped by ~7% and $ETH dropped by ~10%!87,405 traders were liquidated for $318.46M in the past 24 hours.A whale was liquidated for $12.67M on an ETH/BTC long position.Another whale was liquidated for $12.6M on a $BTC long position.… pic.twitter.com/9aObwOYjKv
— Lookonchain (@lookonchain) August 28, 2024
This all happened around midnight European central time when the BTC price actually plunged from $62,000 to $58,200 before bouncing to current levels. So $58,200 now serves as a support level. Over $110,000,000 was liquidated from crypto markets in just 1 hour during this period.
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Exchange Inflows: A Warning Sign
Crypto analyst Julian Moreno shared some interesting insights that could have tipped off traders that the downturn will happen. His analysis of Bitcoin inflows to spot exchanges revealed a telling pattern.
Just before the market crash, there was a spike in the amount of Bitcoin being moved to exchanges. This happened yesterday, right before prices started to tumble. It’s like watching a pressure cooker – as more Bitcoin poured into exchanges, the lid was bound to blow off eventually.
Source: X/jjcmoreno
What’s particularly eye-opening is the breakdown of these inflows. Moreno’s data showed that a good chunk of this movement came from the big players – those holding between 1,000 and 10,000 BTC. When these “whales” start moving large amounts of crypto to exchanges, it’s often a sign they’re gearing up to sell.
This whale activity can create a ripple effect. As these large holders offload their Bitcoin, it can spook other investors, leading to a cascade of selling that drives prices down further. It’s a bit like watching dominoes fall – once the big pieces start moving, the rest often follow suit.
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