TL;DR
- Bitcoin and Ether Lead the Plunge: The crypto market experienced a sharp downturn, with Bitcoin (BTC) and Ether (ETH) erasing gains from the previous week. BTC is currently trading below $64,000, dropping nearly 4%, while ETH sits at $3,138, reflecting a decline of over 9% in the last 24 hours.
- Liquidations and Market Turmoil: Coinglass data reveals over $300 million liquidated from the digital asset space in the past 24 hours. Binance, the world’s largest crypto exchange, saw nearly $100 million liquidated within the last 12 hours.
- Correlation with US Stock Market and Grayscale Concerns: The crypto market downturn coincides with lackluster performance in the US stock market, attributed to waning artificial intelligence enthusiasm.
The crypto market experienced a sharp downturn on Thursday, with Bitcoin (BTC) and Ether (ETH) leading the plunge. Both digital assets erased gains from the previous week, leaving investors concerned about the overall market sentiment.
Bitcoin, the flagship cryptocurrency, is currently trading below the critical $64,000 mark. It has dropped nearly 4% in the last 24 hours, signaling a significant correction. Meanwhile, Ether, the second-largest cryptocurrency, sits at $3,138, reflecting a staggering decline of over 9% during the same period.
The rest of the top 10 cryptocurrencies have followed Bitcoin and Ethereum’s downturn. BNB, SOL, DOGE, ADA, and TON are all in the red, dropping between 4% and 8% in the last 24 hours. Tron’s TRX is the only token among the top 20 to report minimal gains, reporting an increase of less than 1%.
According to Coinglass, the digital asset market experienced liquidations of more than $300 million in the last 24 hours. In the past four hours alone, an additional $17.74 million was liquidated. Binance, the largest crypto exchange in the world, witnessed nearly $100 million in liquidations over the past 12 hours.
Correlation with the US Stock Market
The recent downturn in the cryptocurrency market aligns with the underwhelming showing of the U.S. stock market on Wednesday. According to a report from Bloomberg, the decrease in interest in artificial intelligence is to blame for this trend. The drop in stock market performance seems to have affected investor confidence.
Benjamin Celermajer, the co-chief investment officer at Magnet Capital, shared insights on how the crypto market is closely tied to U.S. equities. He pointed out that when U.S. stocks have a rough night, it tends to impact the sentiment surrounding crypto assets as well.
Ethereum’s ETF Debut and Grayscale Concerns
On July 23, despite the launch of eight new Ethereum ETFs, Ether faced a notable price drop. The ETFs attracted $106 million on the first day, but the trend reversed on the second day with $133.16 million flowing out, as reported by SoSoValue. Grayscale’s ETHE saw outflows of $810 million in the last two trading sessions.
Peter Schiff’s Warnings about the Crypto Market
Financial analyst Peter Schiff has expressed concerns about the current state of cryptocurrency, gold, silver, and the overall financial markets. Schiff is predicting a challenging period ahead for the financial market.
Even with the introduction of ETFs, he pointed out that Ether has plummeted by 9% and Bitcoin has seen a 4% decrease in value within the past day. Schiff is convinced that this data is a clear indication of an impending crypto market crash, especially with the Bitcoin conference in Nashville just around the corner.
Schiff warned that gold and silver could also be affected by market sell-offs. Gold’s value decreased by nearly 2% in the past day. Although he anticipates a minimal decline for gold, Bitcoin and Ether may face significant drops.
Schiff raised concerns that a delayed rate cut by the Fed could result in a stock market crash, potentially causing a recession. Investors are closely monitoring these developments as the crypto market faces increased volatility and uncertainty.
