Markets
This is why the prices of ETH, SOL, XRP, DOGE and PEPE are decreasing
Cryptocurrency market sell-off: The digital asset space witnessed a sharp decline today, with most altcoins failing to maintain positive momentum. While the price of Bitcoin remained near the bay, major altcoins and meme coins such as Ethereum (ETH), Solana (SOL), XRP, Dogecoin (DOGE), Pepe Coin (PEPE) and others witnessed a sell-off today. So let’s take a look at recent market developments and see the potential reasons behind the recent sell-off.
Cryptocurrency Market Selloff: Why Are Altcoins Witnessing a Crash Today?
There could be a number of reasons behind the recent collapse of the cryptocurrency market, especially among altcoins. ETH, SOL,
Here we explore some of the main reasons behind the recent sell-off, which could potentially drive the turbulent price movements.
Whale booking profit
The cryptocurrency market has seen robust gains in recent days, with anticipation skyrocketing Ethereum spot ETF
and other regulatory developments in the industry. Furthermore, the pro-crypto sentiment in the context of the US presidential elections has also strengthened the sentiment of market observers.
Considering this, many investors seem to be shifting their attention towards profit-booking strategy due to the recent surge. For context, a notable whale transaction on Ethereum raised eyebrows today.
According to the report, the whale address 0xAeb…AED31 moved 4062 Ethereum from Lido to Binance, signaling a potential profit of $3.12 million on the sale. This move follows a trend from which the whale had previously moved 18,446 ETH Binancefinally selling part of it for a significant profit two months earlier.
The transaction highlights that whales could potentially make substantial gains, contributing to market volatility. Such profit-taking activities by large holders often trigger sell-offs among retail investors, underscoring the impact of whale movements on cryptocurrency markets.
Distinct opinions on the Ethereum ETF
Enthusiasm for the Ethereum Spot ETF, especially following regulatory approval from the SEC, has driven the price of Ethereum higher in recent weeks. However, despite the growing optimism, several cryptocurrency market analysts have provided different perspectives on the potential performance of the investment instrument.
Although several market observers are bullish on the price of Ethereum after the start of the Trading Ethereum ETFs, some have argued for a different picture. For context, some market experts predict that the U.S. Ethereum Spot ETF will not gain as much traction as the US Bitcoin ETF.
Furthermore, a recent report from leading research firm Kaiko suggests that sul Ether ETF launched
, Ethereum could witness an outflow of $110 million. Kaiko suggested the scenario by comparing it to Bitcoin ETF trading and due to the significant outflow from GrayScale.
Read also: Vanguard Receives Backlash Over Ethereum ETF Ban, But There’s a Problem
Precautions in the meme coin industry
According to recent reports, Cathie Wood, CEO of Ark Invest, provided a mixed perspective on the SEC’s stance on the ETF approval process. Cathie Wood Suggests Regulatory Approval for Ethereum ETF May Only Be Due to American elections problem.
Additionally, he also said that while an ETF for Solana may be approved by the SEC, meme coin ETFs are unlikely to follow the same path. In the midst of this meme coins such as Dogecoin, Shiba Inu, Pepe Coin and others, have noticed sharp drops today.
On the other hand, the recent surge in meme coins has also provided a profit opportunity for cryptocurrency market participants. According to a recent report from Lookonchain data, today a whale deposited 660.7 billion Pepe Coins, worth $9.52 million, on Binance.
Notably, Pepe Coin recently hit a new high and allowed the whale to record a profit of $4.95 million with its recent sales, with an ROI of 52%. According to data from IntoTheBlock, 90% of PEPE holders are now profitable, making it one of the most “profitable of the major meme coins.”
Source: IntoTheBlock,
Cryptocurrency market performance
The cryptocurrency market has been volatile lately, with investors seeking more clarity on the sector. Additionally, the recent surge in cryptocurrency prices, especially meme coins, has provided an opportunity to liquidate holdings to ensure substantial profits for investors.
At the time of writing, the global cryptocurrency market capitalization fell by around 2% to $2.51 trillion, after reaching $2.57 trillion in the past 24 hours. Speaking of individual cryptocurrencies, Ethereum price fell 2.51% to $3,716.64, while Solana price witnessed a fall of 2.37% to $165.12.
According to CoinGlass data, 72,546 traders were liquidated in the last 24 hours, with a total settlement amount of $155.26 million. Over the past 24 hours, Ethereum has seen a liquidation of $26.82 million, with a long liquidation at $18.60 million and a short liquidation of $8.22 million.
Read also: XRP is poised for a breakout, former Ripple director predicts