Bitcoin Price Drops Below $59,000 as ETFs End Eight-Day Winning Streak

Over $300 million of leveraged positions were liquidated as the ‘Crypto Fear and Greed Index’ indicates bearish sentiment prevalent in the market.

Crypto markets dropped on Wednesday in response to Bitcoin ETFs recording outflows on Tuesday after eight consecutive days of positive inflows.

Bitcoin (BTC) plunged 5% to $58,900, while Ethereum (ETH) dropped by 3%. Polkadot (DOT) was down 7%, and Solana (SOL) plummeted 8%.

U.S. Bitcoin exchange-traded funds (ETFs) recorded outflows of $127 million on Tuesday, breaking an eight-day streak of inflows, according to data from Farside Investors.

ARK 21Shares Bitcoin ETF (ARKB) led the outflows with $102 million, marking its largest outflow to date. Grayscale Bitcoin Trust (GBTC) reported net outflows of $18.32 million, while Bitwise Bitcoin Fund (BITB) logged $6.76 million.

$315 Million in Liquidations

According to CoinGlass data, over 87,346 traders were liquidated in the last 24 hours, causing total liquidations to cross $315 million. Bullish bets on BTC and ETH, worth $81 million and $78 million, respectively, were among the liquidated assets.

The ‘Crypto Fear and Greed Index’ indicates a state of “fear” in the market, with a score of 30.

DOGS (DOGS), a memecoin on the TON blockchain, was the top gainer among the top 100 cryptocurrencies by market capitalization, with a 24% increase. Popcat (POPCAT) and Helium (HNT) also recorded 10% and 3% gains, respectively. Maker (MKR) and Polygon (MATIC) were among the worst performers, dropping between 10% and 12%.

DOGS was inspired by Spotty, a mascot promoted by Telegram founder and CEO Pavel Durov, who was arrested in France on Aug. 24. On Monday, DOGS was listed on major exchanges like Binance, Bybit, OKX, Bitget, and Gate.

In traditional markets, stocks dropped again on Wednesday as investors awaited Nvidia’s quarterly earnings report. The S&P 500, the Dow Jones Industrial Average, and the Nasdaq Composite dipped by over 1%.

“We believe that any dip in equities (and crypto) will be short-lived. With Powell and the Fed ready to kickstart a rate-cutting cycle, increased liquidity will eventually push risk assets higher. We are finally on the cusp of a rate-cutting cycle,” wrote trading firm QCP Capital.