After the crypto market struggled to maintain a bullish recovery in the past few weeks following the August 5 crash, Bitcoin (BTC) price led the altcoin sector in notable losses on Friday. In the past two days, Bitcoin price has consistently closed below the crucial support level above $57k, thus indicating the bears are in control.
According to the latest market data, Bitcoin price dropped over 5 percent in the past 24 hours to reach a daily low of about $52,690.
The flagship coin had, however, rebounded above $53,800 on Saturday, during the early Asian session.
The total crypto market cap slipped below $2 trillion, following the forced liquidation of nearly $300 million.
Major Forces Weighing Down on Crypto-Bullish Outlook
September Bearish Chronicles
We are again nailing this #Bitcoin crash ! Lots of people asking about our 2025 view, but it’s too early for that. First we need to wait how low Bitcoin falls. Low 40,000s is quite possible …but first focus is on a drop below 50,000…. https://t.co/wFUlp9jb43 pic.twitter.com/1aiyJdKypA
— 10x Research (@thielen10x) September 6, 2024
Amid the heightened fear of bearish sentiment in the coming weeks, Bitcoin price led the altcoin industry in notable losses in the past two days. The crypto industry followed major stock indexes in bearish sentiments, despite the rising calls for interest rate cuts on September 18.
Bitcoin’s fear and greed index dropped to about 23 percent today, signaling extreme fear among traders.
Most analysts believe the losses could continue in the near term, with Bitcoin price expected to drop below $50k.
Rising Whales’ Selloffs
50 minutes ago, #Wintermute did deposit 46,947 $ETH (~$104.74M) to #Binance.
Institutions and MMs have dumped $ETH frequently since #ETH_Foundation started selling $ETH.
Address:https://t.co/MiN6N0btps pic.twitter.com/vZiDLYOuCx
— The Data Nerd (@OnchainDataNerd) September 7, 2024
According to on-chain data analysis, whale investors have increased the selling pressure in the past few weeks. For instance, Wintermute deposited nearly 47k Ether, worth over $104 million, to the Binance exchange in the past 24 hours.
This giant whale already transferred 1,000 $BTC ($55.36M) to #Binance at loss ~25 minutes ago.
Note that the whale just withdrew 2,322 $BTC from Binance at ~$58,597 (est. cost: $136M) between Aug 29 and Sep 3.
At the current #Bitcoin price, this position has an estimated loss… https://t.co/AHbS64gVqg pic.twitter.com/8e2WHkVvis
— Spot On Chain (@spotonchain) September 6, 2024
As for Bitcoin, investors who bought between $47k-$64k are feeling the squeeze, with only 27.6 percent of them currently in profit. On Friday, a giant whale deposited 1k BTCs, worth around $55 Million, to Binance at a loss.
Poor Performance in Spot Ether and BTC ETFs
🚨 US #ETF 06 SEP: 🔴$170M to $BTC and 🔴$6M to $ETH
🌟 BTC ETF UPDATE (final): -$170M
• None of the US Bitcoin ETFs have seen any inflows for 2 consecutive days.
• The total flow for the week is -$706M with outflows on everyday!
🌟 ETH ETF UPDATE (final): -$6M
•… pic.twitter.com/HS5JBsTB6s
— Spot On Chain (@spotonchain) September 7, 2024
In the past week, the United States-based spot Bitcoin and Ether ETFs have been bleeding profusely. According to the latest market data, the US spot Bitcoin ETFs have registered a net cash outflow of nearly $1 billion led by Fidelity’s FBTC.
As for the spot Ether ETFs, they have registered negative cash flows in the past four consecutive weeks.