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The total crypto market cap dumped 7 percent in the past 24 hours to hover around $2.17 trillion on Wednesday, August 28, during the early Asian session. Bitcoin (BTC) price has experienced significant bearish sentiment after closing the market on Tuesday below crucial support levels.
The altcoin industry was heavily impacted – led by Ethereum (ETH), Solana (SOL), and Dogecoin (DOGE). As a result, more than $319 million was liquidated from the crypto derivatives market, with over 90 percent involving long traders.
Top Reasons Crypto Market Dumped Today
Rising Fear of Further Crypto Capitulation in September
Bitcoin Fear and Greed Index is 30. Fear
— Bitcoin Fear and Greed Index (@BitcoinFear) August 28, 2024
Current price: $59,519 pic.twitter.com/uJwGH0R7ZE
As August approaches the end, later this week, the fear of further crypto capitulation in September has significantly increased. From historical crypto data, it is evident that Bitcoin price has performed poorly in August and September, especially after the halving event.
As previously reported, short-term Bitcoin holders have sold more than 33k BTC units in the past few days.
Significant Cash Outflows from US Spot Bitcoin and Ether ETFs
🚨ARKB Sells 1717 #Bitcoin
— Thomas | heyapollo.com (@thomas_fahrer) August 27, 2024
Wow. Largest ever dump from Cathie's Fund pic.twitter.com/zflahl06MZ
Despite the significant cash inflows to BlackRock’s IBIT since trading, the notable cash outflows from Grayscale’s GBTC have significantly weighed down the bullish sentiment. According to the latest market data, the US spot Bitcoin ETFs registered a net cash outflow of about $127 million, which mostly came from ARK 21Shares Bitcoin ETF.
Meanwhile, the US spot Ether ETFs have now registered eight consecutive cash outflows, led by Grayscale’s ETHE. On Tuesday, the US spot Ether ETFs recorded a net cash outflow of about $3.45 million, thus the total outflow to date amounting to around $482 million.
Ethereum Price Crash
One of the important things I look for in a trade is if it has a well-defined risk point where I can say "I am wrong" and cut my losses.$ETH is a well-defined short-side trade. Above 2830 or so the trade is wrong pic.twitter.com/Iox0NTARTk
— Peter Brandt (@PeterLBrandt) August 27, 2024
The crypto market has suffered low bullish sentiment despite the anticipated interest rate cuts in the United States as early as next month. According to a popular analyst Peter Brandt, Ethereum price has confirmed a bearish outlook after consistently closing below the support/resistance level around $2,814.
Brandt argues that ETH price had been forming a reversal pattern, characterized by a double top coupled with a bearish divergence on the weekly Relative Strength Index (RSI).
Meanwhile, Bitcoin price is expected to continue consolidating in an inverted triangle possibly until the fourth quarter when the bulls are expected to regain control.