Cryptocurrencies faced a sharp downturn on Monday, with traders losing over $1.5 billion in bullish bets, marking the largest liquidation event since March 27. The selloff sent Ether (ETH) and other tokens tumbling, pushing the total digital-asset market capitalization below $4 trillion, according to CoinGecko data.
Ether and Bitcoin Performance
- Ether fell up to 9% to $4,075, as nearly $500 million in leveraged long positions were liquidated, Bloomberg data showed.
- Bitcoin dropped 3% to $111,998 at one point.
- Other cryptocurrencies, including Solana, Algorand, and Avalanche, also saw significant declines.
Market Momentum and Digital-Asset Treasuries
The recent crypto surge, which propelled Bitcoin and Ether to all-time highs in August, was largely driven by public companies establishing digital-asset treasuries. However, this momentum appears to be fading, as shares of treasury-focused firms—from Michael Saylor’s Strategy to Japan’s Metaplanet—have retreated.
George Mandres, senior trader at XBTO Trading, noted, “The market seems to need a breather, with participants concerned that DAT-trade (digital-asset treasuries) is losing steam and meaningful inflows are limited.”
Trader Sentiment and Liquidations
- More than 407,000 trader positions were liquidated within 24 hours, Coinglass data show.
- Funding rates for Ether perpetual futures have turned negative, indicating that short sellers are dominating, effectively paying long holders to maintain positions.
Comparative Performance: Gold and Bitcoin
While cryptocurrencies faltered, gold reached an all-time high of nearly $3,720 an ounce, and silver also gained. Analysts note that easing US monetary policy and a recent Fed quarter-point rate cut have boosted traditional safe-haven assets, while Bitcoin’s response remains muted.
Despite Ether and Solana rallies of 74% and 52% respectively since July, Bitcoin has remained in a relatively narrow range of $110,100–$120,000, with subdued volatility. Several major crypto tokens have recorded double-digit losses over the past five days.
