Crypto News- Bitcoin Declines Following Wednesday’s Tech Market Turmoil

Crypto News- Bitcoin Falls After Wednesday’s Tech Sector Sell-Off

Crypto News- Bitcoin fell to slightly above $64,000 amid a broader stock market decline and waning investor confidence in risk assets, including cryptocurrencies. This drop triggered the liquidation of over $250 million in bullish positions, marking the largest sell-off since early July. At present, Bitcoin is trading around $64,200, reflecting a nearly 3.5% decrease over the past 24 hours. The broader digital asset market, as measured by the CoinDesk 20 Index (CD20), has also experienced a 5.6% decline. This downturn follows a significant drop in the tech-heavy Nasdaq 100 index, which saw its largest decline since 2022 following mixed quarterly earnings reports from Google’s parent company Alphabet and Tesla.

Ether (ETH) has faced a more pronounced decline, dropping over 8% in the last 24 hours. This underperformance compared to the broader crypto market comes amid significant outflows of $810 million from Grayscale’s Ethereum Trust ETF (ETHE). Interestingly, most other ETH ETFs saw positive flows during Wednesday’s session, with BlackRock’s ETHA leading with $283.9 million in net inflows, followed by Bitwise’s ETHW at $233.6 million and Fidelity’s FETH at $145.7 million. The contrast with ETHE mirrors the earlier experience of Grayscale’s bitcoin equivalent, GBTC, which also suffered heavy outflows upon its listing earlier this year. Currently, Ether is trading at $3,165.

The collective market capitalization of stablecoins, encompassing hundreds of coins, surged to over $164 billion, marking its highest level since the collapse of Terra in May 2022, according to data from DefiLlama and Wintermute, a trading firm. Previously hovering around $160 billion, this expansion signals growing investor confidence and supports a bullish market outlook. Wintermute noted that the rise in stablecoin supply indicates increased deposits into on-chain ecosystems to stimulate economic activities. This includes direct on-chain purchases that can drive price appreciation and strategies for generating yields, ultimately enhancing market liquidity and fostering positive growth within the blockchain ecosystem.

Trending crypto chart today

• Chicago Mercantile Exchange (CME) witnessed record-breaking activity in its ether futures market on Tuesday.
• The debut of spot Ethereum (ETH) ETFs in the U.S. sparked significant interest among investors in the second-largest cryptocurrency.
• Previously, the highest volume recorded was 7,550 contracts, set just one month ago.
• On Tuesday, CME saw a substantial increase with 14,736 contracts traded, marking a threefold rise from July’s average daily volume of 5,010 contracts.
• This surge in trading volume on Tuesday also ranked among the top 10 volume days for ether futures on CME.
• Giovanni Vicioso, CME Group’s global head of cryptocurrency products, credited the surge to the launch of spot ether ETFs in the U.S.
• Source: Chicago Mercantile Exchange

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