Still, that represents a 2.5% drop on the weekly timeframe. Other assets, such as Hyperliquid – which Arthur Hayes reportedly sold earlier – and BNB also fell around 4% over the past day, while Ethereum (-2%) fared slightly better and Solana (-6%) slightly worse.
The US$1.5 billion (AU$2.2 billion) slump led to 407,000 traders being liquidated, according to Coinglass. Despite Bitcoin’s decline, Ethereum actually accounted for the largest share of losses, with US$342 million (AU$519 million) in long positions forcibly closed.
Related: Kevin Durant Reveals Early Bitcoin Bet After a16z Party Sparked Investment
Fear has also returned to the market, with the Crypto Fear and Greed Index dropping to 43 — firmly in Fear territory after several weeks in Neutral.
Market uncertainty prevails despite a US Federal Reserve rate cut, which may already have been priced in and was not large enough to meet expectations.
Nassar Achkar, chief strategy officer at CoinW, explained that the market’s direction depends on “upcoming economic data and Fed signals,” with further rate cuts expected later in the year. Achkar added that “macro uncertainty is likely to maintain Bitcoin’s dominance, potentially capping the upside for Ethereum and the broader DeFi sector despite their superior yield opportunities.”
Adding to these macro-driven pressures, concerns over valuations are also weighing on sentiment.
Tyr Capital’s CIO, Edouard Hindi, noted that crypto prices are falling as investors grow wary of overvalued assets and companies, particularly digital asset treasury firms that hold large crypto reserves. With buying slowing, liquidity drying up, and some investors exiting quickly, Hindi argued that inflated valuations are now unwinding over the past 10 days.
Hindi’s views are in stark contrast to those of analysts from Deutsche Bank, who believe that Bitcoin is here to stay and will play a role alongside gold as a reserve asset.
Related: US and UK Launch Transatlantic Task Force on Digital Assets
The post Crypto Markets Stumble: Bitcoin Briefly Dips Under $112K Amid Wider Liquidations appeared first on Crypto News Australia.
Also read: Crypto Bloodbath Wipes Out $1.8 Billion as Overleveraged Traders Pay the Price
