Following the August 5 crash, the cryptocurrency market has been unable to sustain a bullish recovery in recent weeks. On Friday, the price of Bitcoin (BTC) led the altcoin sector in significant losses. The price of Bitcoin has continuously closed below the critical support level above $57k over the last two days, indicating that the bears are in charge.
Current market data indicates that the price of Bitcoin fell by more than 5% in the last day, hitting a daily low of roughly $52,690.
Nonetheless, on Saturday during the early Asian session, the flagship coin surged back above $53,800.
After the forced liquidation of almost $300 million, the entire market capitalization of cryptocurrencies fell below $2 trillion.
Major Forces Weighing Down on Crypto-Bullish Outlook
September Bearish Chronicles
We are again nailing this #Bitcoin crash ! Lots of people asking about our 2025 view, but it’s too early for that. First we need to wait how low Bitcoin falls. Low 40,000s is quite possible …but first focus is on a drop below 50,000…. https://t.co/wFUlp9jb43 pic.twitter.com/1aiyJdKypA— 10x Research (@thielen10x) September 6, 2024
The price of Bitcoin has led the altcoin market in significant losses over the last two days due to the increased concern of bearish sentiment in the upcoming weeks. Even though calls for interest rate cuts increased on September 18, the crypto industry continued to follow major stock indexes in a pessimistic manner.
The fear and greed index for bitcoin fell to roughly 23% today, indicating a high level of anxiety among traders.
The majority of analysts think that the losses might not end anytime soon, and that the price of Bitcoin will likely fall below $50,000.
Rising Whales’ Selloffs
50 minutes ago, #Wintermute did deposit 46,947 $ETH (~$104.74M) to #Binance.
Institutions and MMs have dumped $ETH frequently since #ETH_Foundation started selling $ETH.
Address: https://t.co/MiN6N0btps pic.twitter.com/vZiDLYOuCx— The Data Nerd (@OnchainDataNerd) September 7, 2024
On-chain data analysis indicates that whale investors have stepped up their selling pressure during the last few weeks. For example, in the last day, Wintermute has deposited almost 47k Ether, or more than $104 million, to the Binance exchange.
This giant whale already transferred 1,000 $BTC ($55.36M) to #Binance at loss ~25 minutes ago.
Note that the whale just withdrew 2,322 $BTC from Binance at ~$58,597 (est. cost: $136M) between Aug 29 and Sep 3.
At the current #Bitcoin price, this position has an estimated loss… https://t.co/AHbS64gVqg pic.twitter.com/8e2WHkVvis— Spot On Chain (@spotonchain) September 6, 2024
Regarding Bitcoin, only 27.6% of investors who purchased the cryptocurrency between $47k and $64k are currently profitable. A massive whale lost $55 million when it deposited 10,000 Bitcoins to Binance on Friday.
Poor Performance in Spot Ether and BTC ETFs
🚨 US #ETF 06 SEP: 🔴$170M to $BTC and 🔴$6M to $ETH
🌟 BTC ETF UPDATE (final): -$170M
• None of the US Bitcoin ETFs have seen any inflows for 2 consecutive days.
• The total flow for the week is -$706M with outflows on everyday!
🌟 ETH ETF UPDATE (final): -$6M
•… pic.twitter.com/HS5JBsTB6s— Spot On Chain (@spotonchain) September 7, 2024
The US-based spot Bitcoin and Ether ETFs have been bleeding heavily over the last week. The US spot Bitcoin ETFs have seen a net cash outflow of almost $1 billion, with Fidelity’s FBTC leading the way, per the most recent market data.
The spot Ether ETFs have experienced negative cash flows for the last four weeks running.