Crypto Bloodbath: Bitcoin and Ethereum Plunge in Market-Wide Correction
Digital assets face brutal selloff as major cryptocurrencies post double-digit losses.
Market Carnage Hits Heavyweights
Bitcoin tanks below critical support levels while Ethereum struggles to maintain momentum—both shedding over 20% in seven brutal days. The entire crypto market cap evaporates by hundreds of billions as panic selling overwhelms bullish sentiment.
Whales Dump Holdings
Large holders accelerate selling pressure, transferring massive volumes to exchanges. Retail investors follow suit, creating cascading liquidations across leveraged positions. Trading volumes spike to yearly highs as fear dominates market psychology.
Technical Breakdown Accelerates
Key moving averages shattered as bearish momentum builds. Analysts watch for potential bounce at psychological price levels—though traditional finance pundits smugly declare this proves crypto's 'speculative nature' while ignoring their own manipulated markets.
This correction shakes out weak hands but sets stage for stronger foundations. History shows these violent pullbacks often create generational buying opportunities before the next leg up.
Bitcoin Market Sentiment (Source: Santiment)
Meanwhile, the bearish mood appears to have influenced trading behavior.
CoinGlass data shows that more than 50% of Bitcoin positions are currently short, signaling that most traders expect further price declines. Meanwhile, 48% of traders have maintained active long positions over the past day.
In fact, crypto bettors on prediction platforms like Polymarket increasingly assign a 60% probability that Bitcoin could fall to $111,000 or lower.
Crypto research platform Kronos argued that the market jitters stemmed from concerns over the Federal Reserve’s potential rate cut in September.
According to the firm:
“Powell’s Jackson Hole address remains the key potential pivot [for the crypto market]: dovish language may spark a rebound, hawkish tones could trigger deeper corrections.”
Notably, the rate markets signal a strong chance of easing, with the CME FedWatch data showing the probability at 81%.
