Bitcoin and Ethereum Prices Drop to July Levels, $840 Million Liquidated
Bitcoin and Ethereum, two major cryptocurrencies, experienced a significant downturn in early U.S. trade on Monday following a flash crash over the weekend. Bitcoin’s value dropped by more than 3% in the last 24 hours, reaching $111,300, a price not seen since July. However, despite this decline, the sentiment around Bitcoin among retail investors on Stocktwits improved from ‘bearish’ to ‘neutral’ in the past day.
Stocks tied to Bitcoin were also impacted, with companies like MicroStrategy (MSTR), the largest holder of Bitcoin, seeing a 4.3% decrease in their stock value. Riot Blockchain (RIOT), a Bitcoin mining firm, experienced a 3.9% drop, and Mara Holdings (MARA) fell by 4.4%. Coinbase Global (COIN), a cryptocurrency exchange, saw a 2.7% decrease in stock price as well.
On the other hand, Ethereum’s price dropped by 4.5% to around $4,500 after reaching a new all-time high of over $4,900 during the weekend. Despite this decline, investor sentiment on Stocktwits shifted from ‘neutral’ to ‘bullish’ in the last day. Shares of companies like Bitmine Immersion Technologies (BMNR) and FG Nexus (FGNX), which hold Ethereum, displayed mixed performance during pre-market trading.
Several other major cryptocurrencies, including Solana (SOL), XRP, Cardano (ADA), and Dogecoin (DOGE), also experienced declines in value in early morning trading. Dogecoin, in particular, faced the most significant drop of 5.1% in the last 24 hours, followed by Solana at 4.6%, Cardano at 4%, and XRP at 2.9%.
The crypto market downturn led to liquidations totaling over $840 million in the past day, with most coming from long positions expecting price increases, totaling around $676 million. Short liquidations amounted to approximately $164 million. Ethereum saw the highest liquidations at $297 million, followed by Bitcoin at $270 million, and Solana at $50 million.
This recent selloff underscores the volatility and risk associated with cryptocurrencies, highlighting the importance of careful investment strategies in this market. As prices fluctuate dramatically within short periods, it is essential for investors to stay informed and cautious when navigating the crypto landscape.
