$900M crypto liquidation wave rocks crypto traders, with ETH biggest hit

The crypto market crash continues as Bitcoin drops back to the $109K level as bears take over. The cumulative digital market cap declined by 2% in the last 24 hours to stand at around $3.8 trillion. The brutal reset left more than 200,000 traders bleeding with over $900 million in leveraged bets liquidating.

Ethereum took the heaviest blow after weeks of outperforming Bitcoin. ETH dropped back toward $4,400, erasing much of its Jackson Hole-fueled gains. CoinGlass data shows that the biggest altcoin saw around $320 million worth of long and short bets liquidated.

However, Ether is still up by 80% over the last 60 days, while BTC managed to grow by just 3%.

Altcoin hype fades as ETH retreats from $5K

The ongoing turbulence left traders guessing as crypto liquidations inched towards the $1 billion mark. More than $758 million (86%) turned out to be long positions. This suggests that traders were expecting a rebound rally after the recent drop.

Meanwhile, the digital assets market printed red indexes all the way around. The Fear and Greed index remained in the “Neutral” zone but is tilting close to the fear territory.

The top 10 cryptos saw a halt in bullish sentiments, and the rest of the market reacted. Solana price dropped by over 4% in the last 24 hours. Solana ecosystem tokens followed it. Pudgy Penguins (PENGU) and Bonk prices fell by almost 4%. PENGU and BONK have already been running down by 30% and 42%, respectively, over the past 30 days. DefiLlama data shows that Solana’s total value locked (TVL) slipped by 6% in a day to stand at $10.66 billion.

Ethereum sprinted toward $5,000 last week, lifting the sentiments of altcoin season among investors. Meanwhile, enthusiasm seems to be fading now as the crypto market mirrors a dip in the S&P 500, as macro continues to dictate the tempo. ETH is trading at an average price of $4,415 at the press time. Data shows that Ether’s TVL is down by 3.63% over the last day to stand at $92.02 billion.

Bitcoin momentum fades

As per a Glassnode report, Bitcoin spot market momentum weakened as the RSI slipped toward oversold conditions over the past week. Futures OI shrank 2.6% to $45.9 billion as leverage unwound, while options skew spiked to 8.2%. This signals rising demand for downside hedges as ETF flows also went on to hit $1 billion outflow.

It added that on-chain indicators reflect softer demand as active addresses fell 2% to 692k. Fees are down by 17% which hints at less blockspace demand. Bitcoin price is down by 5% over the past 7 days. BTC is trading at an average price of $109,728 at the press time.

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