Bitcoin and Ethereum started the week with significant declines as these two leading cryptocurrencies fell from recent highs. According to data, Bitcoin has dropped more than 3% in the last 24 hours, sliding from above 118,000 dollars to around 115,303 dollars at the time of writing.
Ethereum also followed, dropping about 4% to 4,270 dollars, ending a significant recent growth streak. The broader market also reflected this weakness as the top 10 cryptocurrencies by market capitalization, including XRP, Binance Coin, Solana, Dogecoin, and Cardano, each recorded an average decline of nearly 4%.
In a note sent to investors on August 18, analysts at Matrixport commented on the current market position, noting that BTC breaking the previous long-term downtrend line providing support was surprising. According to the company, this abrupt decline could cause the price of Bitcoin to test the 112,000 dollar level before the Federal Reserve's interest rate decision in September.
They added:
"Technically, Bitcoin is in a gray area between 112,000 dollars and 117,292 dollars - leaving traders with only two clear strategies: buy on sudden price spikes or wait to accumulate near 112,000 dollars, depending on which condition arrives first."
Meanwhile, Matrixport emphasized that this year's Jackson Hole Economic Conference is unlikely to provide significant signals impacting the market, describing it more as a discussion forum than a catalyst. Therefore, the market will look towards the FOMC meeting on September 17 for clearer guidance.
Ethereum Traders Lose Over 200 Million USD
The sudden decline triggered a wave of liquidations across the cryptocurrency market, catching many traders off guard.
Data from CoinGlass shows that approximately 534 million dollars in leveraged positions were liquidated, affecting more than 127,000 traders.
Long positions suffered the most, accounting for 447 million dollars in losses, while short positions incurred approximately 86 million dollars in losses.
Ethereum traders suffered the heaviest losses, with total liquidation value reaching 212 million dollars, nearly double the 111 million dollars loss of Bitcoin traders.
Traders of Solana, XRP, and Dogecoin also suffered significant losses, amounting to 31 million dollars, 18 million dollars, and 17 million dollars, respectively.
