Bitcoin Drops by 6.5%, Ethereum Slides by 9.4% Amid ETF Outflows and Whale Dumps

• Bitcoin and Ethereum saw sharp 24-hour declines, with $313M worth of liquidations across the crypto market.
• Bitcoin and Ethereum ETFs faced combined outflows of $130.5M, reflecting the ongoing market downturn.
• Ethereum’s market cap fell below $300B despite Vitalik Buterin holding 90% of his net worth in ETH.

Bitcoin and Ethereum experienced sharp declines within the last 24 hours, with Bitcoin dropping 6.5% to a low of $58,034, and Ethereum plunging 9.4% to $2,392. This sudden price movement coincided with liquidations across the crypto market, as $313 million worth of assets were liquidated. Notably, long orders accounted for $282 million of the liquidations, while short orders saw a smaller share at $31.36 million.

Inflation Data, Nvidia Earnings, and Whale Activity Shake the Market

Several factors contributed to Bitcoin’s dip, including heightened anticipation for U.S. PCE inflation data and the looming Nvidia earnings results due August 28. In addition, whale activity increased, with large-scale Bitcoin holders offloading their assets. Despite these pressures, Bitcoin’s performance earlier in the year led to a 111% surge in the number of Bitcoin millionaires, driven in part by the recent halving event and Bitcoin’s all-time high (ATH) earlier this year.

ETFs See Outflows as Crypto Market Declines

In line with the broader market downturn, Bitcoin and Ethereum ETFs faced notable outflows. As of August 27, Bitcoin ETFs saw outflows of $127.05 million, reflecting the asset’s continued downward movement. 

Ethereum ETFs also recorded outflows totaling $3.45 million, even in light of BlackRock’s recent Ethereum ETF launch in Brazil. The flagship cryptocurrencies’ overall performance also showed a decrease in dominance. Bitcoin’s market dominance slipped by 0.03%, landing at 56.27%.

Ethereum’s Founder Holds Majority of Net Worth in ETH

Amid Ethereum’s struggles, founder Vitalik Buterin revealed that nearly 90% of his net worth is held in ETH. This news briefly lifted investor sentiment, but Ethereum’s price remained sluggish. 

Ethereum’s market cap fell below $300 billion at press time, signaling its continued underperformance compared to Bitcoin. Both assets’ simultaneous declines suggest broader macroeconomic factors at play, including ongoing liquidations and significant sell-offs across the market.