Bitcoin and major cryptocurrencies have lost momentum, with significant declines across the board, including a 22% drop in WorldCoin. Meme coins such as Popcat and Peanuts the Squirrel also faced steep declines of around 20%. Despite the less severe losses, Bitcoin is still below 100,000 USD, trading at 97,484 USD. Ethereum fell 7%. The massive Bitcoin outflow from Coinbase shows strong demand from institutional investors, and Bitfinex points to signs of market stabilization.
Bitcoin and most major crypto assets are struggling to maintain momentum as they are in the red. Some coins have plummeted by more than 20%, with World Coin (WLD), for example, down 22% in the past 24 hours, followed closely by Monero (XMR) at 21%.
Massive landslide hits major meme coins
Meme coins Popcat on SOL (POPCAT) and Peanuts the Squirrel (PNUT) fell 20.8% and 20.5%, respectively.
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And even the big players are posting losses, with XRP and Cardano (ADA) both down about 15%, followed closely by Dogecoin (DOGE) and Solana (SOL), which are down 11% and 8%, respectively.
XRP daily chart, source: CoinMarketCap
Bitcoin (-3.7%) and Ethereum (-7%) suffered less severe losses, with Bitcoin well below US$100,000, trading at US$97,484 (AU$151,435) at the time of writing .
According to Coinglass, more than 500,000 traders were liquidated as a result of the flash crash, with a total of US$1.71 billion (A$2.65 billion) lost. Binance, OKX, and Bybit were the exchanges with the highest liquidations.
Currency clearing heatmap, source: Coinglass
Analysts say large outflows indicate strong demand
Despite the crash, which will hopefully be short-lived, CryptoQuant analysts have released some encouraging news. In a recent note, we specifically highlighted that in a single block, 8,455 BTC was removed from Coinbase Advanced Exchange. They highlighted how this indicates accumulation by whales, and that this appears to be occurring more frequently.
Bitcoin exchange breach on Coinbase Advanced, Source: CryptoQuant
This significant outflow highlights the growing interest in Bitcoin, especially among large investors. Such events are becoming increasingly frequent, indicating strong institutional demand.
cryptoquant
Meanwhile, Bitfinex analysts believe there are signs that the market is stabilizing, with several indicators normalizing or turning positive. In a note to investors, they wrote that “realized profit metrics have declined from a daily high of $10.5 billion to $2.5 billion,” which eases pressure on the seller side.
“Forward funding rates are also normalizing,” they added, indicating that speculative leverage in the market is decreasing.
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The US Spot Bitcoin Exchange Traded Fund (ETF) has become another support point for BTC. And while Monday's net negative inflows amounted to US$90.5 million (A$140.6 million), that figure dwarfs last week's total weekly inflows of US$2.7 billion (A$4.2 billion). do not have.
This shows continued support from ETFs, which, as Bitfinex says, “remain a significant source of support amid continued long-term holder profit taking.” It shows.
