Crypto prices experienced a significant drop over the last few hours since the close of US markets on Tuesday. Bitcoin (BTC) fell by 6%, Ethereum (ETH) by 9%, and Solana (SOL) by 7% within a 24-hour period, according to CoinMarketCap.
Timing of the Sell-Off
The abrupt sell-off began just after 5 p.m. Eastern Time. In roughly an hour, Bitcoin’s price plummeted from nearly $62,000 to around $58,000. Since then, it has partially recovered to the $59,000 range.
Impact on Ethereum and Solana
Ethereum saw its price decrease from the upper $2,500s to the mid-$2,400s, while Solana’s value dropped from above $154 to its current level near $147.
Liquidations Report
According to CoinGlass, leveraged futures positions totaling $205 million were liquidated over the past four hours. This brings the total liquidations in the past 24 hours to over $300 million, marking the highest figure since August 4th.
Technical Factors Behind the Decline
Lack of Clear Catalyst
There was no immediate catalyst for the sudden decline in crypto prices. However, technical factors may have influenced Bitcoin’s price drop.
Bitcoin’s decline followed a drop below its 50-day moving average (50DMA), a significant resistance level throughout August. This resistance had previously turned into support during last Friday’s crypto rally, which saw Bitcoin peak at $65,000. With this support now lost, Bitcoin might face a near-term test of $56,000 according to chart analysis.
Future Outlook for Crypto Prices
Potential Short-Term Recovery
The sharp decline in crypto prices might be short-lived if Nvidia’s earnings report on Wednesday exceeds expectations. Nvidia, a major player in the AI sector, has significantly impacted the US equity bull market. Positive earnings from Nvidia could boost major cryptocurrencies, potentially pushing Bitcoin above $60,000 again.
Upcoming Economic Data
The release of US Core PCE inflation data later in the week could further support crypto prices. If the data suggests a stronger economic outlook, it may reinforce the Federal Reserve’s stance on rate cuts. The Fed’s recent dovish shift has already been reflected in the reduced hawkishness of its communication, signaling possible rate cuts ahead.
Long-Term Implications
Easing liquidity conditions are expected to be a significant positive factor for crypto prices in the coming years.
The post Crypto Prices Dump: BTC -6%, ETH -8.5%, SOL -6.5% – What’s Going On? appeared first on Cryptonews.
