Bitcoin (BTC) and Ethereum (ETH) saw a rocky start to the week, with both cryptocurrencies experiencing notable losses after reaching recent highs. According to data from CryptoSlate, Bitcoin dropped more than 3% in the past 24 hours, falling from above $118,000 to around $115,303. Ethereum also followed suit, slipping by roughly 4% to $4,270, ending its streak of substantial gains.
The broader cryptocurrency market reflected this weakness, with the top 10 cryptocurrencies by market cap, including XRP, Binance Coin (BNB), Solana, Dogecoin, and Cardano, each posting average declines of around 4%. Analysts at Matrixport noted in an Aug. 18 investor note that Bitcoin’s break below a long-term downtrend line that had previously acted as support was unexpected. This sudden pullback could potentially lead Bitcoin prices to test the $112,000 level before the US Federal Reserve’s September rate decision.
Matrixport suggested that traders have two clear strategies: buying strength on a breakout higher or waiting to accumulate closer to $112,000, whichever comes first. The firm also mentioned that the upcoming Jackson Hole Economic Symposium is unlikely to provide significant market-moving signals and that the market will likely look to the Sept. 17 FOMC meeting for clearer guidance.
The decline in prices triggered a wave of liquidations across crypto markets, catching many traders off guard. Data from CoinGlass revealed that approximately $534 million in leveraged positions were liquidated, impacting over 127,000 traders. Long positions accounted for $447 million in losses, while short positions contributed around $86 million.
Ethereum traders bore the brunt of the liquidations, with losses totaling $212 million—almost double the $111 million lost by Bitcoin traders. Traders of Solana, XRP, and Dogecoin also faced significant losses, amounting to $31 million, $18 million, and $17 million, respectively.
At the time of writing, Bitcoin is ranked #1 by market cap, with a price down 2.21% over the past 24 hours. The cryptocurrency has a market capitalization of $2.3 trillion and a 24-hour trading volume of $60.08 billion. The total crypto market is valued at $3.89 trillion, with a 24-hour volume of $167.73 billion and Bitcoin dominance at 59.02%.
In conclusion, the cryptocurrency market experienced a downturn at the start of the week, with Bitcoin and Ethereum leading the way in losses. Traders will be keeping a close eye on upcoming events like the FOMC meeting for guidance on market direction.