Bitcoin Tumbles Amid ETF Outflows; Ethereum, Dogecoin, Solana Crash: Analytics Firm Says ETH Can Make It To $5,000
Leading cryptocurrencies, including Bitcoin and Ethereum, experienced significant declines due to rising institutional outflows, with Bitcoin falling below $109,000 and Ethereum dropping to the early $4,300s. The total liquidations in the crypto market exceeded $928 million in 24 hours. Despite the downturn, on-chain analytics firm Santiment noted that Ethereum could potentially reach $5,000 due to increased demand from Binance whales. The overall cryptocurrency market capitalization decreased by 4.08%, while major stock indices also fell following Federal Reserve Chair Jerome Powell's dovish remarks.
Leading cryptocurrencies dived further on Monday as rising institutional outflows hampered the risk-on sentiment.
Crypto Liquidations Surpass $900 Million In 24 Hours
Bitcoin fell below $109,000, while Ethereum dropped to the early $4,300s, as the market’s post-Jackson Hole gains faded after a whale sold $2.7 billion worth of BTC.
The flash crash dragged other altcoins down, with Solana and Dogecoin plunging by more than 8% each.
Bitcoin's market dominance fell to 57.9%, while Ethereum's share increased to 14%.
In the past 24 hours, 203,687 traders were liquidated and the total liquidations came in at $928.12 million. A whopping $818 million in long positions were erased.
Bitcoin's open interest dipped 3.20% over the last 24 hours. That said, Binance derivatives traders bought the dip, increasing their long exposure to the apex cryptocurrency, according to the Long/Short Ratio.
The market remained in "Neutral" state, according to the Crypto Fear & Greed Index.
Top Gainers (24 Hours)
The global cryptocurrency market capitalization stood at $3.76 trillion, plunging 4.08% in the last 24 hours.
Stocks Reverse Post-Jackson Hole Gains
Stocks closed down to begin a fresh trading week. The Dow Jones Industrial Average dipped 349.27 points, or 0.77%, to finish at 45,282.47 The S&P 500 slid 0.43% to close at 6,439.32, while the tech-focused Nasdaq Composite fell 0.22% to end at 21,449.29.
The sell-offs reversed Friday’s gains following Federal Reserve Chair Jerome Powell's dovish Jackson Hole speech where he suggested that future rate cuts are possible if labor market weakness worsens.
Whale Accumulation Could Drive ETH To $5,000
On-chain analytics firm Santiment drew attention to the six-day outflow streak of Bitcoin exchange-traded funds, the longest since early April when tariff concerns rocked the market.
"Increasingly, there are cases to be made that these inflows & outflows are retail-driven, and not just institutional-driven like they were early on," Santiment added.
Another popular blockchain analytics firm CryptoQuant noted a significant increase in Ethereum's demand from Binance whales.
"This strong accumulation thus supports the upward movement and will likely provide enough momentum to push ETH toward the $5 000 level," the firm predicted.
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