Total Crypto market cap falls below $1 trillion as whales dump Bitcoin and Ethereum
- The crypto market capitalization has declined below the $1 trillion mark for the first time in six months.
- Large deposits to exchanges have been noted by trading firms, including Jump Trading and Wintermute.
- Arbitrum also became a target of the whales as millions of ARB were sold over the past 24 hours.
The crypto market has been witnessing a drawdown for the past month, and the past 24 hours have added to the same. As FUD surrounding Solana and the FTX hearing injected fear into the market, investors reacted with panic selling. This led to a phenomenon not observed in almost six months now.
The crypto market falls below a crucial level
The total value of the crypto market slipped below the $1 trillion mark as on the last day, nearly $29 billion was wiped out. The 2.84% decline in the market cap brought the combined value of all cryptocurrencies to a little over $987 billion.
Total crypto market capitalization
The present value of the crypto market was this low back in March this year and marks a six-month low. Even though the investors’ sentiment was of fear, the crash that occurred towards the end of August injected severe bearishness in the market, which met the FUD regarding the SOL and FTX bankruptcy hearing.
Beyond traders and investors, many large trading firms also jumped on the bandwagon and offloaded millions of dollars worth of crypto assets. According to analysis firms Arkham Intelligence and Lookonchain, the likes of Jump Trading, Abraxas Capital Management and Wintermute Trading have deposited over $30 million worth of Bitcoin, Ethereum and Arbitrum on various exchanges.
Some of the largest exchange deposits during today’s carnage:
— Arkham (@ArkhamIntel) September 11, 2023
-14K ETH ($22.5M) from Abraxas Capital Management to Bitfinex (two transactions)
-236 BTC ($5.9M) from Jump Trading to Binance
Track more movements with Arkham.https://t.co/f63pY4QYFk pic.twitter.com/ufCnQiYJWY
This whale behavior added to the bearish impact experienced by the market.
Largest longs liquidation in three weeks
The last 24 hours also marked a milestone in the Futures market, where long contracts were liquidated as a result of the crash. According to data from Coinglass, close to $150 million worth of long liquidations was observed, which is the highest since the crash of mid-August, which resulted in almost $1 billion worth of long contracts being liquidated.
Crypto market long liquidations
This three-week high marks losses for investors that would take some time to recover, looking at the current bearish sentiment of the market.
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Author
Aaryamann Shrivastava
FXStreet
Aaryamann Shrivastava is a Cryptocurrency journalist and market analyst with over 1,000 articles under his name. Graduated with an Honours in Journalism, he has been part of the crypto industry for more than a year now.
