Bitcoin and Ether dropped 2% and 7% in the last 24 hours, respectively.
Around $250 million was wiped off from the crypto space in the past 24 hours.
Experts said that the US stock market tumble is partially responsible for the crypto crash.
The crypto market tumbled on Thursday, with leading digital assets Bitcoin (BTC) and Ether (ETH) erasing gains from the previous week. Bitcoin is currently trading at $64,000, while Ether sits at $3,182, reflecting a decline of over 7% in the last 24 hours.
Data from Coinglass reveals that more than $250 million was liquidated from the digital asset space in the past 12 hours, with nearly $300 million wiped out over the last 24 hours. An additional $52.44 million was liquidated within the past four hours alone. Binance, the world’s largest crypto exchange, saw nearly $100 million liquidated in the last 12 hours.
The crypto market downturn coincides with a lackluster performance in the U.S. stock market on Wednesday, attributed to waning artificial intelligence enthusiasm, according to a Bloomberg report. Investor sentiment appears to have been dampened by the stock market decline.
Benjamin Celermajer, co-chief investment officer at Magnet Capital, commented on the correlation between the crypto market and the US stock market, stating:
“It mainly seems that after a bad night for equities in the US, crypto like most asset classes is feeling a little bit of a flow-on effect in sentiment.”
While Bitcoin saw a price drop of around 2%, Ether witnessed a more significant price crash despite the debut of eight new spot Ethereum exchange-traded funds on July 23. The first day saw $106 million in inflows into the ETFs, but the second trading day reversed course with $133.16 million in outflows, according to SoSoValue data, with $326 million exit Grayscale’s ETHE.
Notably, over the past two trading sessions, the Grayscale Ethereum Trust (ETHE), a six-year-old product that converted to a spot ETH ETF on Wednesday, witnessed outflows of $810 million, raising concerns among investors regarding the price trajectory of the world’s second-largest digital asset.
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