Crypto Crash Continues: Bitcoin, Ethereum Take a Deep Dive
Bitcoin’s still stuck under the $59,000 mark, sliding steadily since last Saturday.
Ethereum’s struggling to keep its toes above the $2,300 line after yesterday’s week‑long low.
What’s tightening the squeeze?
- Short‑sellers on US Bitcoin spot ETFs are piling in. The short volume has been climbing since mid‑week, turning the ETF waters into a bit of a sinkhole.
- Last Friday, however, the ETFs did surprise everyone by netting over $263 million in inflows—a two‑month high that nudged Bitcoin up to $60,000 for the first time this month.
- Despite the inflows, Bitcoin balances on exchanges are on the rise. From 3 million in late August to 3.019 million today, it looks like investors are putting more coins into the cold storage—only to sell them later.
Futures and Derivatives: Not a helping hand
Since Saturday, the futures market has dumped more than $190 million of long positions. Short traders now make up a little over half of the total trading volume, so the charts feel more bearish than bullish.
When the Bank of Japan talks about raising rates or tightening policy, it could make borrowing more expensive for leveraged positions. That would prompt people to close out and could swing the market further negative. The BOJ probably isn’t tightening this week, but the skies aren’t entirely clear.
Meanwhile, the Federal Reserve is gearing up to announce its next rate move. Market odds are pointing at a 65% chance of a 50‑basis‑point cut. A quick rate cut might lift risk appetite a bit, but it’s unlikely to swing crypto back into the big gains we saw earlier in the year.
Bottom line: Hold Tight, or Sleep Early
With bearish bets licking the market, futures draining longs, and central banks eyeing tighter policy, Bitcoin and Ethereum are doing a slow, steady slide—more like a sad whale’s yawn than a fast dive. If you’re in this boat, keep your eyes peeled, but don’t pretend you’re an aggressive fisherman chasing coin!
