CryptoETHBitcoin Plummets Amid Market Turbulence, Ethereum ETF Launch

Bitcoin Plummets Amid Market Turbulence, Ethereum ETF Launch

Bitcoin (BTC) experienced a sharp decline on Wednesday, plummeting over 3% to reach the $64,000 mark. CoinGlass data revealed that long liquidations in the crypto market surged to $220.7 million over the past 24 hours. This significant drop paralleled broader market losses, with the Nasdaq 100 index falling 3.65%, marking its steepest decline since October 2022.

In addition to the long liquidations, $32 million in short positions were liquidated, with Ethereum accounting for $17.5 million and Bitcoin for $14.8 million. Ethereum’s price dropped nearly 8.6% over the past 24 hours, following the launch of spot Ethereum ETFs on Tuesday. ETH is now trading at $3,159.

Analysts have linked Bitcoin’s performance to tech stocks, pointing to factors such as a shifting political landscape in Washington, D.C., and optimistic bets on U.S. spot Ethereum exchange-traded funds.

Despite the unexpected short-term losses, some analysts remain optimistic about potential upward momentum in the coming months. “We maintain a positive Ethereum outlook,” stated QCP Capital, a Singapore-based crypto trading firm, in a note on Tuesday. “Bitcoin’s achievement of an all-time high two months post-ETF launch provides a compelling precedent. Anticipating sustained institutional interest, ETH’s price trajectory may gradually converge with its previous all-time high.”

The recent selloff in tech stocks was reportedly triggered by earnings reports from major companies, including Alphabet Inc., Google’s parent company, which revealed higher-than-expected capital expenses. Consequently, Alphabet’s stock fell over 5%, its worst performance since January. Tesla also experienced a significant drop of more than 12%, while Nvidia, a leading figure in artificial intelligence, saw its stock decline by 6.8%.

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Andrew
Andrew
Self-taught investor with over 5 years of financial trading experience Author of numerous articles for hedge funds with over $5 billion in cumulative AUM and Worked with several global financial institutions. After finding success using his financial acumen to build an investment portfolio, Andrew began writing and editing articles about the cryptocurrency space for sites such as chaincryptocoins.com, ensuring readers were kept up to date on hot topics such as Bitcoin and The latest news on digital currencies and Ethereum.

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