Crypto Market Faces $600M Liquidation, More Dip Incoming?

The crypto market has continued to bleed, with most of the top cryptocurrencies recording massive selling pressure today.

Notably, the dip comes after the broader digital assets space offered a robust return in July, which has sparked market optimism.

In addition, the recent retreat in Bitcoin and Ethereum also suggests that not only the retailers, but also the institutions are losing their confidence.

So, here we take a quick tour of the current market movements and see what lies ahead for the top players in the space.

Crypto Market Faces $600M Liquidation, Sparking Concern

The global crypto market cap has lost more than 2% today and slipped to $3.69 trillion. Notably, the market cap has lost around $200 billion from yesterday, falling from $3.83 trillion.

Bitcoin price has recorded a slump of nearly 2% while writing and slipped to $113,500, with its trading volume falling more than 19% to $69.81 billion.

On the other hand, Ethereum price was down around 4% to $3,508, while other altcoins like XRP, BNB, SOL, and others plunged between 2% and 5%.

Meanwhile, CoinGlass data showed that the crypto market witnessed a massive wave of liquidations yesterday, with over 145,571 traders losing their positions.

The total liquidation value comes in at $602.50 million. Binance recorded the largest single liquidation order, valued at $4.45 million for ETHUSDC.

Amid this, the experts anticipate a further dip in Bitcoin (BTC) price, which has sparked investors’ concern.

In addition, panic selling by investors has also intensified, fueling fears of additional declines in the market.

Experts Warn of Further Dip

Amid the ongoing dip in the crypto market, market pundits have shared bearish projections for Bitcoin and Ethereum, hinting at the possibility of further declines ahead.

For context, BitMEX co-founder Arthur Hayes has made a gloomy prediction about the future prices of Bitcoin (BTC) and Ethereum (ETH).

According to Hayes, the ongoing economic trends will likely lead to a significant downturn in the crypto market. He cited the upcoming US tariff bill in Q3 as a major factor contributing to this potential decline.

Hayes believes that the current economic landscape is characterized by a lack of sufficient credit creation to boost nominal GDP.

This, in turn, will impact the digital assets, with BTC potentially testing $100,000 and ETH testing $3,000.

In addition, analyst Ali Martinez also said that BTC is likely to test the support between $105,000 and $107,000.

Considering the current price at $113,000, it appears that BTC is poised to witness more dip if the bears remain in control.

Echoing a similar sentiment, analyst Gordon said, “BTC crash has just started. It’s over for Bulls.” Besides, he has also shared a price chart, which suggests the ongoing retreat will continue.

Panic Selling Amid Gloomy Historical Performance

The investors are also panic-selling amid the ongoing crash in the digital assets space.

In a recent X post, Lookonchain reported that a whale, identified by the address “0x3c9E”, has deposited 26,182 ETH, worth $93.66 million, to top exchanges like Binance, Kraken, and others.

In addition, historical performance for both Bitcoin and Ethereum showed that the cryptocurrencies tend to bleed in August and September. Since 2013, BTC has ended August in the red 8 times through 2024.

On the other hand, Ethereum has ended the month on a gloomy note for the last six times since 2016.

Although historical performance doesn’t assure future returns, the investors might be playing it safe amid the ongoing uncertainties.

However, many in the crypto market are deeming the current dip as a healthy correction. In other words, many are expecting the ongoing correction to offer more buying opportunities to investors.

Meanwhile, in a recent X post, Eric Trump has once again asked investors to “₿uy the dips.”

He has also mentioned BTC and ETH along with his post, reflecting his confidence in the assets.