The total crypto market cap fell by 7 percent over the past 24 hours, hovering around $2.17 trillion on Wednesday, August 28, during the early Asian session. The price of Bitcoin (BTC) has experienced significant bearish sentiment after the market closed below crucial support levels on Tuesday.
The altcoin industry was hit hard, with Ethereum (ETH), Solana (SOL), and Dogecoin (DOGE) leading the way. As a result, over $319 million was liquidated from the crypto derivatives market, with over 90 percent of that amount being long traders.
Top Reasons Why Crypto Market Dumped Today
Growing fears of further crypto capitulation in September
As August draws to a close, fears of further crypto capitulation in September later this week have increased significantly. Historical crypto data shows that the Bitcoin price has underperformed in August and September, especially after the halving.
As previously reported, short-term Bitcoin holders have sold over 33,000 BTC units in recent days.
Significant Cash Flows From US Spot Bitcoin and Ether ETFs
Despite significant cash inflows into BlackRock’s IBIT since trading began, notable cash outflows from Grayscale’s GBTC have significantly dampened the bullish sentiment. According to the latest market data, U.S. spot Bitcoin ETFs recorded net cash outflows of around $127 million, most of which came from ARK 21Shares Bitcoin ETF.
Meanwhile, U.S. spot Ether ETFs have now recorded eight consecutive cash outflows, led by Grayscale’s ETHE. On Tuesday, U.S. spot Ether ETFs recorded net cash outflows of around $3.45 million, bringing total outflows to around $482 million year to date.
Ethereum price crash
The crypto market is battling low bullish sentiment despite the expected rate cuts in the United States as early as next month. According to a popular analyst, Peter Brandt, the Ethereum price has confirmed a bearish outlook after it consistently closed below the support/resistance level around $2,814.
Brandt claims that ETH price formed a reversal pattern, characterized by a double top coupled with a bearish divergence on the weekly Relative Strength Index (RSI).
Meanwhile, Bitcoin price is expected to continue consolidating in an inverted triangle, possibly until Q4, when bulls are expected to regain control.
