The drop of Bitcoin below $113,000 and the decline of Ethereum to $4,200 triggered a significant series of liquidations in the cryptocurrency market, leaving the market in the red. CoinGlass data reveals the liquidation of a $450 million position in the market today, affecting 122,096 traders.
In this case, Ethereum leads the liquidation with a loss of $180.13 million, followed by Bitcoin with $102.44 million in liquidation. Other major altcoins, such as XRP ($17.84 million), SOL ($14.92 million), and DOGE ($10.91 million), are also in the liquidation race, affecting global traders.
It is noteworthy that Ethereum's dominance in liquidation has remained constant over the past few days, as its recent upward trend has significantly influenced investors' trading decisions. A user who turned $125,000 into $29.6 million in ETH has lost it all again with this downward trend, according to Lookonchain.
The cryptocurrency market in general is facing a correction ahead of the release of the FOMC meeting minutes today and Jerome Powell's speech in Jackson Hole on Friday. It is important to note that investors are being very cautious with their trading decisions while waiting for hints from the Fed about possible rate cuts in September.
A shift in investor perception was also observed following the SEC's postponement of the decision on the XRP ETF until October. Even the launched ETFs experienced significant outflows, led by the Bitcoin spot ETF, with a net flow of -$121.81 million on August 19. Ethereum also recorded the same result, with outflows of $196.62 million.
Profit taking and massive whale selling also played an important role. Additionally, the decline could persist if macroeconomic events generate new bearish trends this week.
