Faster Crypto Market Decline: The cryptocurrency market has dropped 6%, with Bitcoin falling below $58K and Ethereum down 8.4%. The market appears to be driven by automatic stop orders, targeting $54K for Bitcoin. Ethereum risks further declines, potentially dipping below $2100. Large sellers and cautious futures markets signal bearish trends, despite increased crypto wealth among investors.
Faster crypto market decline
The cryptocurrency market has plunged 6% to a capitalisation of $2.08 trillion, its lowest level in nine
days. Bitcoin is falling in line with the broader trend, while Ethereum and Solana are down 8.4% and
7.3%, respectively. Gold has also experienced an almost synchronised sell-off, losing around 1%, but
equity markets remain generally positive and hopeful.
Bitcoin fell below $58K in thinly liquid trading early Wednesday afternoon but later recovered to $59K
by the start of active trading in Europe. The sell-off intensified after a failed attempt to break above
$65K early Monday afternoon, taking the price back below its 200- and 50-day moving averages. The
first cryptocurrency may be heading towards the lower end of the trading range as it heads towards
$54K. The market appears to be largely dragged down by automatic stop orders during light trading
hours. Such sell-offs often take leveraged traders out of the market but also attract long-term buyers
on dips.
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Ethereum briefly dipped below $2400, its lowest level since 8 August. There is a risk that this weeks
sell-off is a second leg lower, following the collapse and subsequent consolidation of previous weeks.
A drop below $2100 could confirm this hypothesis.
News background
CryptoQuant doubted that the bullish scenario would materialise soon due to the activation of large
sellers. The bitcoin futures market also shows that traders are cautious.
According to Henley & Partners Crypto Wealth Report 2024, the number of investors holding at least
one million dollars in cryptos reached 172,300, 95% more than a year earlier.
The trustee of Celsius, a bankrupt lending platform, distributed $2.5 billion in digital assets and fiat to
creditors, paying off 93% of the company’s financial obligations.
Mining company Rhodium Enterprises filed for bankruptcy with debts of up to $100 million.
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