Cryptocurrency market lost $ 1 billion in just two days

The crypto market started the week with a massive drop: bitcoin BTC $108,536.00 Mezo Wrapped BTC 0.29% Market capitalization $39.78 million VOL. 24 hours $0.98 billion dropped below $ 110,000, and ethereum ETH $4,453.03 Bridged Ether (StarkGate) 2.67% Market capitalization $0.11 billion VOL. 24 hours $1.48 billion , which recently rose above $ 4,800, lost more than 7% and is trading at $ 4,361. The average daily dynamics was negative for other assets as well, with Solana SOL $204.79 Binance-Peg SOL 2.15% Market capitalization $0.22 billion VOL. 24 hours $0.61 billion down 8.1% to $ 187 and Dogecoin DOGE $0.22 Binance-Peg Dogecoin 1.40% Market capitalization $0.56 billion VOL. 24 hours $94.06 million losing 8.2% to $ 0.21. XRP XRP $2.80 XRP -0.02% Market capitalization $166.82 billion VOL. 24 hours $0.15 billion sank by 4.3% to $ 2.87. The total capitalization of the crypto market decreased by 4% to $ 3.76 trillion.

The «flash crash» was caused by a massive sale of BTC by one of the major holders worth $ 2.7 billion. This led to the liquidation of almost $ 928 million, of which $ 818 million was accounted for by long positions. Over the past 24 hours, more than 203 thousand traders have been liquidated.

Against this backdrop, bitcoin lost its dominance in the market, its share dropping to 57.9%, while the share of ether increased to 14%. At the same time, traders on Binance took advantage of the downturn and increased their long positions in BTC, which was reflected in the growth of the Long/Short Ratio. The Fear and Greed Index remained in the neutral zone.

US stocks also ended the day in the red: The Dow Jones dropped 0.77% to 45,282 points, the S&P 500 fell 0.43% to 6,439 points, and the Nasdaq dropped 0.22% to 21,449 points. This offset some of the gains caused by Jerome Powell’s «dovish» statement in Jackson Hole.

Despite the overall weakness of the market, Santiment and CryptoQuant analysts point to the active accumulation of ETH by major players, including Binance. According to their estimates, strong demand from the whales could drive ethereum to the $ 5,000 mark.