Total Crypto market cap falls below $1 trillion as whales dump Bitcoin and Ethereum

Today, the cryptocurrency market cap declined by 2.84%, evaporating nearly $29 billion and dropping below the $1 trillion mark. Currently, the total value of all cryptocurrencies is slightly above $987 billion, nearing the levels seen in March of this year, marking a six-month low.

Cryptocurrency total market capitalization, source: TradingView.

The recent decline is primarily attributed to FUD (Fear, Uncertainty, and Doubt) surrounding Solana and market concerns stemming from the FTX hearing, prompting investors to engage in panic selling. In addition to traders and investors, many large trading firms have also joined the selling spree, offloading millions of dollars' worth of crypto assets.

According to data from analysis firms Arkham Intelligence and Lookonchain, companies such as Jump Trading, Abraxas Capital Management, and Wintermute Trading have deposited over $30 million worth of BTC, ETH, and ARB across various exchanges, becoming the largest long liquidations within three weeks. This whale behavior has exacerbated the bearish sentiment prevailing in the market.

Furthermore, in the past 24 hours, the futures market witnessed a significant milestone as long contracts were liquidated due to the collapse. Data from Coinglass indicates the observation of nearly $150 million worth of long liquidations, reaching the highest level since the mid-August crash.

Cryptocurrency market long liquidations, Source: CoinGlass.

Given the current bearish sentiment in the market, recovering from the loss of these three-week highs will likely require a considerable amount of time.