Top Reasons Why the Crypto Market Dumped Today

The total crypto market cap dumped 7 percent in the past 24 hours to hover around $2.17 trillion on Wednesday, August 28, during the early Asian session.

Crypto Market Cap Today: Top Updates

The total crypto market cap experienced a 7 percent decrease over the past 24 hours, bringing it to around $2.17 trillion on Wednesday, August 28, during the early Asian session.

Bitcoin price faced significant bearish pressure after closing the market on Tuesday below crucial support levels. This downturn led to more than $319 million in liquidations from the crypto derivatives market, with over 90 percent impacting long traders.

Here are the top reasons for the crypto market dump today:

Rising Fear of Further Crypto Capitulation in September

FearRising fear of further crypto capitulation in September As August approaches the end, later this week, the fear of further crypto capitulation in September has significantly increased.

From historical crypto data, it is evident that Bitcoin price has performed poorly in August and September, especially after the halving event. As previously reported, short-term Bitcoin holders have sold more than 33k BTC units in the past few days.

Significant Cash Outflows from US Spot Bitcoin and Ether ETFs

Cathie Wood’s ARKK fund sold 1,717 Bitcoin from its holdings on Tuesday. This marks the largest-ever crypto sell-off from the ARK fund.

ARK 21Shares Bitcoin ETF (BITQ) recorded a net cash outflow of about $127.22 million on Tuesday. This outflow is primarily attributed to the fund's large creation units, which were priced at around $500 million on August 27.

However, the total cash outflows from Grayscale's Bitcoin (BTC) trust, known as GBTC, to date in August now stand at about $527.34 million.

Meanwhile, the US spot Ether ETFs have now registered eight consecutive cash outflows, led by Grayscale’s ETHE.

On Tuesday, the US spot Ether ETFs recorded a net cash outflow of about $3.45 million, thus the total outflow to date amounting to around $482 million.

Ethereum Price Crash

ETH price crashed on Tuesday, and a close below $2,814 would confirm a bearish outlook for H2 2024. One of the important things I look for in a trade is if it has a well-defined risk point where I can say "I am wrong" and cut my losses.

$ETH is a well-defined short-side trade. Above 2830 or so the trade is wrong pic.twitter.com/Iox0NTARTk

According to a popular analyst Peter Brandt, Ethereum price has confirmed a bearish outlook after consistently closing below the support/resistance level around $2,814.

Brandt argues that ETH price had been forming a reversal pattern, characterized by a double top coupled with a bearish divergence on the weekly Relative Strength Index (RSI).

Moreover, a close above $2,814 would invalidate this bearish outlook, indicating that ETH price may continue to trade within a broader bullish trend. Notably, this analysis is based on the H2 2024 price chart.

On the other hand, Bitcoin price is expected to continue consolidating in an inverted triangle possibly until the fourth quarter when the bulls are expected to regain control.

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