The cryptocurrency market dramatically plunged Tuesday evening, triggering a sharp wave of liquidations.
| Cryptocurrency | Gains +/- | Price (Recorded 8:30 p.m. EDT) |
| Bitcoin BTC/USD | -5.79% | $59,378.14 |
| Ethereum ETH/USD | -8.93% | $2,451.88 |
| Dogecoin DOGE/USD | -6.90% | $0.09873 |
What Happened: Bitcoin tanked below $59,000, marking its lowest level since Aug. 19. The plunge followed King Crypto's move past $63,000 earlier in the day.
Ethereum witnessed a steeper decline, plummeting to an intraday low of $2,400—a level last seen nearly three weeks ago.
Over $207 million was liquidated from the market in the last 4 hours, taking the 24-hour liquidations to $315 million.
Nearly $283 million in leveraged longs was wiped out, the highest since the Aug. 5 market rout.
Bitcoin's Open Interest tumbled 7.68% in the last 24 hours, further reflecting the large-scale liquidation of longs.
The Cryptocurrency Fear & Greed Index flashed "Fear" as of this writing, implying substantial selling pressure.
Top Gainers (24-Hours)
| Cryptocurrency | Gains +/- | Price (Recorded at 8:30 p.m. EDT) |
| Toncoin (TON) | +2.03% | $5.38 |
| Tether Gold (XAUt) | +0.29% | $2.520.85 |
| UNUS SEO LEO (SEI) | +0.08% | $5.84 |
The global cryptocurrency market stood at $2.07 trillion, collapsing 5.93% in the last 24 hours.
In contrast, stocks closed higher Tuesday. The broad-based index, S&P 500, gained 8.96 points, or 0.16%, to end at 5,625.80. The tech-heavy Nasdaq Composite added 0.16% to close at 17,754.82. The Dow Jones Industrial Average rose 0.02% to finish at 17,754.82, its second consecutive record close.
The rally came ahead of the hotly-anticipated second-quarter earnings of AI behemoth NVIDIA Corp. NVDA, which has served as a barometer for all things tech and AI this year. Shares of Nvidia closed 1.46% higher on Tuesday.
See More: Best Cryptocurrency Scanners
Analyst Notes: Popular analytics firm Santiment linked the cryptocurrency market's latest retrace to extreme funding rates on derivatives exchanges like dYdX.
The firm drew attention to the spike in over-leveraged long bets on Aug. 25, after which the market started to trend downwards.
"When funding rates get extreme in either direction, they are always prone to get liquidated and shoot markets in the opposite direction," the research firm added. It also urged investors to wait until funding rates cool down before turning optimistic again.
Widely-followed cryptocurrency analyst Rekt Capital interpreted Bitcoin's move as a post-breakout retest of the downtrending channel.
"Successful retest of the top of the channel would fully confirm the breakout and precede upside continuation," the analyst stated.
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