$ETH The Sudden Drop of Bitcoin Triggers $550 Million Liquidations, While Ether Strengthens

Bitcoin suffered a sudden drop over the weekend, plunging below $111,000, after a large whale sold 24,000 BTC. This massive sell-off, which wiped out gains made following Federal Reserve Chairman Jerome Powell's speech in Jackson Hole, triggered a wave of liquidations amounting to more than $550 million in the cryptocurrency market.

Despite the drop in Bitcoin, Ether (ETH) has shown remarkable resilience, holding steady near $4,707 and rising 9% in the past week. Analysts believe this divergence is due to large institutions rotating their investments from Bitcoin to Ether, anticipating that a potential rate cut by the Fed could boost Ethereum more strongly, given its smaller market capitalization.

🔸 Key Points:

- Impact of Bitcoin's Drop: The sale of 24,000 BTC by a whale generated liquidations totaling $238 million in Bitcoin positions and $216 million in Ether, demonstrating the market's fragility.

- Capital Rotation towards Ether: Analysts point to a structural shift in demand, with institutions and large investors favoring Ethereum. The Ethereum network, with its growing role in stablecoins and smart contracts, is expected to become Wall Street's preferred blockchain.

- Bullish Outlook for ETH: The price of Ether has reached a new high, and predictions of a $10,000 price, which were once considered overly optimistic, are now more common among analysts. Ether's performance so far this year has already exceeded 45%.