Following the struggles of the crypto market to maintain a bullish recovery in recent weeks after the August 5 crash, Bitcoin (BTC) price experienced significant losses on Friday, leading the altcoin sector. Bitcoin price has consistently closed below the crucial support level above $57k for the past two days, indicating bearish control.
Market data shows that Bitcoin price dropped over 5 percent in the last 24 hours, reaching a daily low of about $52,690. However, the flagship coin managed to rebound above $53,800 during the early Asian session on Saturday.
The total crypto market cap dropped below $2 trillion due to the forced liquidation of nearly $300 million.
Major Forces Weighing Down on Crypto-Bullish Outlook
September Bearish ChroniclesÂ
Amid the increased fear of bearish sentiment in the coming weeks, Bitcoin price led the altcoin industry in notable losses over the past two days. The crypto industry mirrored major stock indexes in bearish sentiments, despite calls for interest rate cuts on September 18.
Bitcoin’s fear and greed index dropped to about 23 percent today, indicating extreme fear among traders. Most analysts predict that losses could continue in the near term, with Bitcoin price expected to drop below $50k.
Rising Whales’ Selloffs
According to on-chain data analysis, whale investors have intensified selling pressure in recent weeks. For example, Wintermute deposited nearly 47k Ether, valued at over $104 million, to the Binance exchange in the last 24 hours.
For Bitcoin, investors who bought between $47k-$64k are feeling the pressure, with only 27.6 percent currently in profit. On Friday, a significant whale deposited 1k BTCs, worth around $55 million, to Binance at a loss.
Poor Performance in Spot Ether and BTC ETFs
In the past week, spot Bitcoin and Ether ETFs based in the United States have seen significant outflows. The US spot Bitcoin ETFs have experienced a net cash outflow of nearly $1 billion, led by Fidelity’s FBTC.
On the other hand, spot Ether ETFs have recorded negative cash flows for the past four consecutive weeks.
