Top cryptocurrencies have fallen in price amid outflows from bitcoin ETFs

On Tuesday, August 19, the cryptocurrency market suffered a significant decline amid the dominance of «fear» among investors. The total capitalization decreased by 3.38% to $ 3.80 trillion. Bitcoin BTC $63,470.71 Mezo Wrapped BTC 1.10% Market capitalization $75.59 million VOL. 24 hours $0.53 billion dropped by 2.84% to trade at $ 113,153, Ethereum ETH $1,882.34 Bridged Ether (StarkGate) 2.12% Market capitalization $33.49 million VOL. 24 hours $0.23 billion lost 5.54% to $ 4,096, and XRP XRP $1.08 Binance-Peg XRP 2.35% Market capitalization $0.35 billion VOL. 24 hours $36.13 million and Dogecoin DOGE $0.07 Binance-Peg Dogecoin 2.31% Market capitalization $0.18 billion VOL. 24 hours $19.35 million sank by more than 6% each to $ 2.87 and $ 0.2103, respectively. Solana SOL $73.48 Binance-Peg SOL 2.16% Market capitalization $80.83 million VOL. 24 hours $61.71 million also dropped by 4.03% to $ 177.68.

The market is under pressure from a significant outflow of funds from bitcoin ETFs, which amounted to $ 523.31 million over the day, signaling active sales by institutional players. At the same time, more than $ 456 million in long positions were liquidated, and the open interest in Bitcoin fell by 1.66%. Nevertheless, more than 60% of Binance 's top traders remain in the longs, waiting for a recovery.

Yesterday, Ethereum dropped to an intraday low of $ 4,070, which is almost 14% lower than the multi-year highs recorded last week. The sharp losses of XRP, DOGE, and SOL increased the overall pressure on the altcoin market. The Fear and Greed Index for cryptocurrencies shows a predominance of «fear,» which could accelerate the wave of sales.

Despite the overall decline, some coins managed to show positive dynamics. MemeCore (M) grew by 6.09% to $ 0.4295, Mantle (MNT) by 4.89% to $ 1.35, and OKB rose by 2.18% to $ 125.77.

Analysts at CryptoQuant believe that BTC’s weakness is in line with typical post-halving cycles. If history repeats itself, the correction may last for another 2−4 weeks, after which it is expected to recover and move to new highs. Trader Momin Saqib predicts a possible drop of BTC below $ 112,000 and ETH below $ 4,100, but emphasizes that September could be the beginning of a new growth, and the market will get a real boost in the fourth quarter.