The crypto leveraged market, led by Ethereum (ETH), recorded more than $506 million in net liquidations during the last 24 hours. According to market data analysis from CoinGlass, 143,027 traders were liquidated, with long traders involving more than $430 million compared to $77 million in short traders.
The wider crypto market followed major stock indexes in intraday correction. For instance, the S&P 500 dropped 0.6 percent on Tuesday while the NASDAQ index dropped 1.5 percent in the last 24 hours.
Top Reasons Why Crypto Dropped Today
In the past two days, the overall demand for Bitcoin and Ethereum by institutional investors has significantly declined. For example, the U.S. spot Ether ETFs have recorded a net cash outflow of more than $250 million in the past two days led by BlackRock’s ETHA.
Additionally, the U.S. spot BTC ETFs, led by BlackRock’s IBIT, recorded a net cash outflow of more than $130 million in the last two days. On-chain data analysis also shows an accelerated selloff by whale investors.
What are Experts’ Midterm Expectations for Crypto Bull Market
The crypto market is awaiting tomorrow’s FOMC meeting minutes and U.S. unemployment claims to gauge Friday’s Fed Chair Jerome Powell speech. Furthermore, last week’s hotter than expected inflation data has faded the bets on Fed rate cut in September.
The midterm crypto outlook will heavily be influenced by Bitcoin and Ethereum’s price action. As for ETH, the lower edge of the CME gap around $4,098 remains a magnet, with technical analysis showing $4k as a major support level.
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Meanwhile, Bitcoin price must hold above the support level around $113k to invalidate a potential retrace towards $109k in the coming weeks. According to crypto analyst Benjamin Cowen, BTC price will likely drop to $109k in September, but its market dominance will rebound.
