<img src="https://cryptoslate.com/wp-content/uploads/2024/07/ethereum-outflow-liquidation.jpg” />
The cryptocurrency market fell by around 5% over the past 24 hours, in line with a significant drop in major US stocks, sending global markets lower.
bitcoin's price fell nearly 3%, from $67,000 to around $64,000, while ethereum saw an even steeper drop, falling nearly 8%, from $3,400 to roughly $3,100.
Other major digital assets including BNB, Solana, Dogecoin, and Toncoin also faced notable losses, each falling more than 5%, according to from CryptoSlate data.
Analysts noted that on July 24, US stock markets suffered their worst day since 2022, driven by a sell-off in tech companies that benefited from the rise of artificial intelligence. Reports revealed that more than $1 trillion was lost from the market due to this situation.
The Nasdaq Composite Index fell 3.6%, its worst performance in two years. The S&P 500 fell 2.3%, its biggest daily drop in more than a year, and the Dow Jones Industrial Average declined 1.3%.
Notably, significant outflows from ethereum exchange-traded funds (ETFs) further contributed to the market's decline. Over the past day, eth-based ETFs saw outflows exceeding $133 million, with Grayscale ethereum Trust (ETHE) alone experiencing net outflows of $326.86 million, as reported by the cryptocurrency exchange. CryptoSlate Knowledge.
Markus Thielen, founder of 10x Research, said:
“The pre-launch rally for the ethereum ETF is finally over. All cryptocurrency listings have seen a surge in price ahead of the launch, only to turn into a news-selling trading opportunity.”
Red market triggers liquidation of around $300 million
Coinglass data shows that the widespread red market situation resulted in significant losses for cryptocurrency traders speculating on digital asset prices.
According to the dataMore than 73,000 traders faced liquidations totaling around $300 million, with most of the losses suffered by traders betting on price increases being long-term. This group of traders lost approximately $267 million, while traders with bearish sentiments were liquidated for less than $30 million during the reporting period.
Asset-wise, ethereum and bitcoin traders experienced the highest liquidations, with totals reaching approximately $102 million and $83 million, respectively.
