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Here’s Why Ethereum Price Is Falling Today

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7 months ago

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A day after the successful launch of the spot Ethereum ETF, the Ethereum price has come under strong selling pressure cracking over 8% and tanking all the way to $3,150 levels. This has resulted in strong liquidation of the long positions of Ethereum in the last 24 hours.

Ethereum Liquidations Skyrocket

As per the data from Coinglass, the total Ethereum liquidations have surged past that of Bitcoin in the last 24 hours. The data shows that Ethereum liquidations currently stand at $97.8 million while Bitcoin liquidations are comparatively at $80.9 million.

Of the total ETH liquidations, $94.4 million have been the long liquidations with only 43.3 million in short liquidations. Interestingly, most of these liquidations have come in the past 4 hours with the Ethereum price facing huge selling pressure.

It seems that the approval of the spot Ethereum ETF has actually turned out to be a sell-the-news event similar to what we saw in the case of Bitcoin earlier this year in January. With the ETH price running up to $3,500 in July, investors seem to be finally cashing out the euphoria surrounding the ETF approval.

Also Read: Hashdex Files S-1 For Combined Spot Bitcoin and Ethereum ETF

Furthermore, on-chain data shows that a giant Ethereum whale has been offloading its coins on Wednesday, July 24. As per the data from Spot on Chain, a giant Ethereum whale minted $173 million in profit from ETH, while depositing 10,000 ETH on Kraken worth $34.2 million, just before the Ethereum price drop.

This whale had reportedly withdrawn 96,639 ETH from Coinbase from Coinbase at $1,580 in September 2022. Since March this year, the whale has moved nearly 40,000 ETH to Kraken. The whale still holds a remaining balance of 56,639 ETH valued at $188 million at the current ETH price.

Additionally, 10xResearch noted that the current Mt. Gox distributions are putting pressure on the broader crypto market.

“If this trend continues, crypto will need more help to rally. Ethereum might be the weakest link, where fundamentals (new users, revenues, etc.) have been stagnant or lower,” noted 10x Research.

Also Read: Kraken Exchange Under Fire As Some Mt Gox Creditors Complain

Is Ethereum Price Reversal Anytime Soon?

Popular crypto analyst Michael van de Poppe stated that the ETH price could see some reversal amid strong outflows from the Grayscale Ethereum Trust. ETH might see two weeks of downward movement before it resumes the rally to new all-time highs. As per the chart, Ethereum could be taking support around $3,150 before resuming upward gains.

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Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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ByBit Hacked, BTC Stagnant, LTC ETF Advances

Published

14 minutes ago

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February 23, 2025

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Crypto Highlights This Week: The broader market concludes another interesting week, primarily keeping investors on their toes. Cryptocurrency exchange behemoth Bybit suffered a $1.4 billion hack this week, whereas BTC and altcoins remained stagnant despite market advancements. Simultaneously, the meme coin sector panicked amid the emergence of the Argentinian LIBRA token.

Here’s a brief collection of some of the top crypto market updates reported by CoinGape Media over the past week.

Weekly Crypto Highlights: ByBit Exchange Hacked By N. Korean Group

The renowned cryptocurrency exchange Bybit was hacked by ‘The Lazarus Group’ this week, resulting in a massive exploitation of funds. Reportedly, the North Korean criminal organization stole $1.4 billion worth of ETH from the crypto exchange.

As a result, the broader crypto market saw a whopping $566 million liquidated in a day as investors started panic selling. In turn, BTC and altcoins reversed recent gains, backtracking to previous lows. BTC price closed the week at around $96K, whereas ETH was near $2,800. XRP & SOL also reversed recent gains, trading in the red this weekend.

It’s also worth mentioning that ByBit rolled out a $140 million bounty for cybersecurity experts to recover $1.4 billion stolen in Ethereum.

LIBRA Token Panic: What Happened?

Meanwhile, Argentinian President Javier Milei endorsed the Solana-based LIBRA meme token this week, which soon rocketed in value. However, the market was taken by storm when insiders cashed out massive amounts amid the rally, urging LIBRA price to crash over 90%. This saga raised rug-pull concerns surrounding the crypto, further bringing heat to its price.

However, President Javier Milei ordered a probe into the launch and KIP Protocol, aiming to rectify the error and bolster the token. This saga has emerged as another noteworthy crypto highlight this week, underscoring the market’s risky nature.

ETF Filings This Week

Simultaneously, a stockpile of ETF advancements was witnessed this week. Canary Capital’s Litecoin ETF emerged on Depository Trust & Clearing Corporation (DTCC), solidifying chances of approval.

Further, Grayscale’s XRP ETF entered the U.S. SEC’s review mode.

Also, asset manager Franklin Templeton filed an S-1 to launch a spot Solana ETF with the U.S. SEC this week. Mentioned above are the top crypto market highlights for this week, which appear to have substantially impacted investor sentiment.

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Coingape Staff

CoinGape comprises an experienced team of native content writers and editors working round the clock to cover news globally and present news as a fact rather than an opinion. CoinGape writers and reporters contributed to this article.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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Bybit Turns To Bitget And Binance For $239 Million ETH Loan Amid Withdrawal Spike

Published

3 hours ago

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February 23, 2025

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Bybit, a popular crypto exchange, is reeling from the massive hack worth $1.5 billion in digital assets. According to reports, the hackers targeted the crypto exchange’s cold wallet, an offline storage system, to steal the exchange’s assets, primarily Ether. On-chain data reveals that the stolen funds were quickly transferred into different wallets and liquidated on several platforms.

Ben Zhou, Bybit’s CEO, promptly addressed the hack and told users that the site’s other cold wallets are secure and withdrawals are processed “normally”. 

As the company struggles with a surge in withdrawal requests, it received over 88,000 ETH (worth around $239 million) from popular exchanges like Binance and Bitget. The fresh crypto transfers from these two popular exchanges boosted Bybit’s liquidity, allowing it serve the customers’ withdrawal requests.

Authorities Link Breach To North Korean Hacking Group

Friday’s hacking of the Bybit cold wallet is considered the biggest crypto hacking on record. Arkham Intelligence and Elliptic said the stolen digital assets were quickly transferred to different accounts and liquidated within minutes. Elliptic reports that the hacking is by far the biggest in the industry and easily surpassed the stolen $570 million from Binance in 2022 and the $611 million worth of crypto assets drained from Poly Network in 2021.

Elliptic speculated that the Lazarus Group, a state-backed hacking team in North Korea, perpetrated the hack. The Lazarus Group is known for its crypto-hacking activities, stealing billions of dollars from different sites. 

Bybit Gets Help From Binance And Bitget

As Bybit struggled to service the surge of withdrawals, it received help from other popular exchanges to cover the requests. Arkham said the exchange received more than 88,000 Ether or roughly $239 million from Binance and Bitget addresses.

The fund infusion can boost the exchange’s current liquidity as it addresses the massive withdrawal requests. Bybit confirmed that its users moved funds from the exchange after the hack was made public.

ETH is currently trading at $2,734. Chart: TradingView

Arkham said Bitget transferred 40,000 Ether, or $106 million, to a Bybit cold wallet on February 21st at 19:44 (UTC). Lookonchain argued that Bitget transferred its funds to the exchange to boost its liquidity and serve as a vote of confidence. 

After 10 minutes, a Binance hot wallet transferred 11,800 Ether or $31 million to the same Bybit cold wallet address. In total, Binance has transferred 47,800 Ether or $127.48 million. 

CEO Explains Crypto Exchange Remains Solvent

Bybit’s CEO, Ben Zhou, has assured its users and customers that the exchange is solvent. In a Twitter/X post, the CEO explained that the customers’ funds are backed 1:1 and that the company can service the losses even if it fails to recover them.

Featured image from Adobe Stock, chart from TradingView





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Can Bitcoin Erase US Debt By 2049? VanEck Research Weighs In

Published

8 hours ago

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February 22, 2025

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VanEck has announced a bold prediction that Bitcoin will play a critical role in managing the United States’ rising national debt. The study, based on Senator Cynthia Lummis’ proposed Bitcoin Act, shows that a strategic Bitcoin reserve may partially balance the country’s debt by 2049. But how feasible is this concept?

The Potential Impact Of Strategic Bitcoin Reserves

The study examines a scenario in which the US government obtains up to 1 million BTC during a five-year period. If this strategy comes to fruition, VanEck believes that such a reserve may help balance almost $21 trillion in national debt by 2049. Based on forecasts of future debt growth, this equates to around 18% of the expected total debt at the time.

However, this positive forecast is heavily reliant on Bitcoin’s price trajectory. VanEck’s model forecasts that BTC will grow at a 25% compounded annual rate (CAGR). Starting with an estimated acquisition price of $100,000 per unit in 2025, the crypto would need to see sustained price increases over the next two decades.

Source: VanEck

Debt Growth Versus Bitcoin Appreciation

The study considers the expected 5% annual rate of increase in US debt trajectory. Any effort to balance the predicted $100 trillion national debt by 2049 will need assets with big appreciation potential.

Though highly volatile, Bitcoin presents both a challenge and an opportunity. A 25% CAGR is an ambitious aim considering past pricing volatility, regulatory uncertainties, and industry acceptance patterns. Should the slow down in the crypto’s expansion, the reserve might not meet expectations, therefore lessening its value in addressing national debt.

BTC is now trading at $96,456. Chart: TradingView

Bitcoin As A Government Asset

VanEck’s view is consistent with a broader discussion concerning the leading digital currency’s role in national economies. Countries such as El Salvador have already adopted the top coin into their financial plans, albeit on a far lesser scale. If the US took a similar strategy, it would be an unparalleled shift in monetary policy.

The practicality of building such a massive Bitcoin reserve raises concerns. Would the government buy the crypto asset gradually or in bulk? How would it safeguard and govern such an asset? These uncertainties complicate VanEck’s vision.

A High-Risk Gamble Or A Financial Breakthrough?

VanEck’s research presents an intriguing possibility, despite these obstacles. The potential of BTC as a long-term wealth reserve is still a topic of debate among economists and policymakers. It may be feasible to employ the digital asset to mitigate national debt if its value continues to increase.

For now, the feasibility of this strategy remains uncertain. The US government has yet to indicate any concrete plans to acquire the alpha crypto on a large scale. But with national debt rising and Bitcoin’s influence growing, discussions around this unconventional solution are far from over.

Featured image from Gemini Imagen, chart from TradingView



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