Why is Crypto Down Today: BTC, ETH, XRP, SOL, Altcoins Dipping More

Key Insights:

• Why is crypto down today as investor sentiment was impacted after a huge 3.7% US PPI inflation print?
• Almost $600 million in crypto liquidations were recorded due to higher leveraged trades.
• Experts anticipate Bitcoin crashing over 20% as per historical price discovery correction, with $112K as the key support level to watch.

The crypto market crash continues this week, with the crypto market cap tumbling 3% further from $4.02 trillion to $3.88 trillion over the last 24 hours. Bitcoin price pared gains and tanked under $115K, while experts estimated a further drop to $112K.

Altcoins such as Ethereum (ETH), XRP, Solana (SOL), Dogecoin (DOGE), and Cardano (ADA) saw a 3-5% fall in prices. ETH price dropped 4% to almost $4,200 as validators exit queue hit a new all-time high (ATH).

Crypto Fear & Greed Index plunges to 60 (greed) today from 70 (greed) last week. This indicates waning investor sentiment amid caution after a 3.7% core PPI inflation print in the United States.

Massive Liquidations Causing Crypto Market Crash

The crypto market is witnessing a major crash amid high-leveraged liquidations over the last 24 hours. The liquidations were triggered after the US PPI inflation rose 0.9% in July, reducing Fed rate cut hopes.

Almost $600 million in crypto liquidations were witnessed in the last 24 hours, according to Coinglass data. More than 131K traders were liquidated in the last 24 hours.

The largest single liquidation order of XBTZ25 value at $7.83 happened on crypto exchange BitMEX. ETH, BTC, SOL, XRP, DOGE, LINK, ADA, SUI, ENA, and FARTCOIN were the most liquidated crypto assets in the last 4 hours.

Notably, over $1.10 billion in crypto liquidations were recorded on Thursday, with more than $450 million in long positions liquidated in just an hour.

Analyst Show Historical Correlations As to Why is Crypto Down Today

Popular analyst Rekt Capital revealed that Bitcoin price is following a historical price discovery correction. However, he expects the price correction in this cycle to be shorter and less deep.

He highlighted that the BTC price crashed by 29% in a week in 2017 and 25% in 3 weeks in 2021.

Moreover, some expect Bitcoin to peak by September-end or mid-October. This is based on historical cycles showing Bitcoin price peaked 518-550 days after halving events.

Analyst CrediBULL Crypto expects ETH price to witness some upside if BTC price holds its range lows. Traders need to keep an eye on a change in BTC and ETH dominance to confirm the upside momentum.

Bitcoin Price Falls to Key Support Level at $112K

10x Research reported on August 18 that key earnings, deals, and shifting market sentiment to impact the crypto market.

The firm added that the recent rally suddenly reversed amid heavy profit booking by investors. Glassnode data indicated that 99% of investors were in profit after Bitcoin price hit $122K.

Meanwhile, crypto research firm Matrixport predicted Bitcoin price could fall to $112,000, with the Fed rate decision in September as the key catalyst for market direction.

The US dollar index (DXY) rising above 98 and the 10-year US Treasury yield climbing above 4.326% are putting more selling pressure on BTC price.

The crypto market crash will likely continue, with Bitcoin price dragging altcoins downwards. BTC price was trading 3% lower at $115,224 at the time of writing.

The 24-hour low and high were $114,723 and $118,376, respectively. Furthermore, the trading volume has increased by 50% in the last 24 hours, indicating a rise in interest among traders.