Why Is The Crypto Market Down Today?

July 25, 2024

Are you a crypto trader or investor? Well, you didn’t wake up happy this morning.

The crypto market is down around 3.5% in the last 24 hours, but the major downturn happened during nighttime (CET).

At 3:29 AM CET, Watcher Guru reported that $100 million was liquidated from the crypto market in the last 30 minutes.

Considering most Europeans were asleep during this time, the liquidation was likely done by US investors.

JUST IN: $100 million liquidated from the cryptocurrency market in the past 60 minutes.
— Watcher.Guru (@WatcherGuru) July 25, 2024

Possible Reasons for the Downturn

LookOnChain just reported that in the past 24 hours, Grayscale transferred $485.6M to Coinbase, and received $14.8M from CoinbasePrime, with a net outflow of 135,662 $ETH or $470.8M!

However, Grayscale still holds $7.9 billion in Ethereum.

Ethereum plunged around 8% today, so ETH is now trading below $3,200 after trading over $3,500 for the past week.

In the past 24 hours, #Grayscale transferred 140,044 $ETH($485.6M) to #CoinbasePrime, and received 4,382 $ETH($14.8M) from #CoinbasePrime, with a net outflow of 135,662 $ETH($470.8M)!

According to #Grayscale's website, #Grayscale currently holds 2,489,075 $ETH($7.9B).… pic.twitter.com/2LYaRinh4h
— Lookonchain (@lookonchain) July 25, 2024

Despite Grayscale’s selloff, another reason for the plunge could be the “sell the news” event around ETH ETFs that happened with Bitcoin in January too.

As a reminder, Bitcoin price plunged to from $46k to below 40k after Bitcoin ETFs started trading, and we now have a similar story with Ethereum too.

The BTC price plunged around 2.7%, which is significantly less than Ethereum. This indicates ETH ETFs were likely a factor in the downturn as well. So, if the history of ETFs approvals though us anything, Ethereum could hit new ATH in the next 2 to 3 months.

However, there’s still positivity among crypto traders that this bloodbath is only temporary and we might see positive movements from the market in the last 5 months of 2024.

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