Bitcoin, Ethereum, Dogecoin, XRP Slide As Crypto Liquidations Top $500 Million: Analyst Says This Is What Is In Store For BTC In The Current Quarter
Leading cryptocurrencies, including Bitcoin, Ethereum, and Dogecoin, experienced significant declines, with over $500 million liquidated in the market. Bitcoin fell below $115,000 but recovered slightly, while Ethereum struggled to maintain gains. The Crypto Fear & Greed Index indicated increased selling pressure. Investors are awaiting Federal Reserve Chair Jerome Powell's speech for monetary policy signals, with a high probability of interest rate cuts. Analysts predict Bitcoin may consolidate between $112,000 and $120,000 in Q3, with potential for further declines.
Leading cryptocurrencies fell further, while stocks barely changed on Monday as investors trimmed risk appetite.
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More Than $400 Million In Longs Liquidated
Bitcoin sank below $115,000 early morning but recovered to above $117,000 by evening. Trading volume jumped nearly 50% over the last 24 hours.
Ethereum also rebounded to $4,400, but the rally could not be sustained, pushing the coin back to the early $4,300s overnight. XRP and Solana fell 0.15% and 2.50%, respectively.
ETH's dominance rose to 13.3%, while Bitcoin's market share dropped below 59%.
Over $535 million was liquidated from the market over the last 24 hours, with long positions accounting for $436 million. Around $422 million in BTC longs risk liquidation if the coin slips below $114,000.
Bitcoin's open interest fell 1.24% over the last 24 hours. Meanwhile, over 57% of Binance traders with open BTC positions were betting in favor of the coin's rally.
The "Greed" sentiment dropped further to 56, according to the Crypto Fear & Greed Index, signaling an increase in selling pressure.
Top Gainers (24 Hours)
The global cryptocurrency market capitalization stood at $4.02 trillion, following a decline of 3.87% in the last 24 hours.
All Eyes On Jerome Powell
Stocks were little changed on Monday. The Dow Jones Industrial Average fell 34.30 points, or 0.08%, to close at 44,911.82. The S&P 500 dipped 0.01% to close at 6,449.15. The Nasdaq Composite was the outlier, closing up 0.03% at 21,629.77.
Investors are looking forward to Federal Reserve Chair Jerome Powell’s speech at the Jackson Hole Economic Policy Symposium on Friday for signals on monetary policy.
Traders are pricing in an 83% chance that the central bank cuts interest rates at its September meeting, according to the CME FedWatch tool.
Will Whale Accumulation Power Bitcoin Up?
On-chain analytics firm Santiment stated that Bitcoin whales have been accumulating since the dip from last week's all-time high.
"With prices -6.22% since August 13th, wallets with 10-10,000 BTC have accumulated 20,061 more coins," Santiment added.
The firm indicated a "notable correlation" between the cohort's holdings and BTC's future price movement.
Widely followed cryptocurrency analyst BitBull highlighted the "worst case scenario" for the apex cryptocurrency
"It’ll continue to consolidate between $112,000-$120,000 in Q3, while alts will head higher. We could even see a capitulation wick below $112,000, just like we had a pump above $124,000," the analyst projected.
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