Bitcoin’s price fell to below $95,000 per coin on Friday, marking a significant drop to a six-month low. As Bitcoin stumbled, the situation for alternative cryptocurrencies was even more precarious, with Ethereum and Solana both experiencing steep sell-offs. Remarkably, $1.36 billion in futures positions were liquidated in just 24 hours, leading to substantial losses for traders anticipating higher prices.
Ethereum, the second-largest cryptocurrency by market capitalization, fell below $3,100 earlier on Friday, reflecting nearly a 7% decrease within a 24-hour timeframe. This decline positions Ethereum more than 35% below its previous high of $4,946 recorded in August, making it one of the primary underperformers among major cryptocurrencies on that day.
Solana, another significant player in the crypto landscape, suffered even worse. The coin’s value plummeted over 8% during the same period, trading around $142 on Friday morning in New York. This downturn occurred despite healthy inflows into newly launched exchange-traded funds that give investors exposure to Solana. According to Farside Investors, these funds have consistently attracted investments since their debut on October 28. Nevertheless, Solana’s price remains over 52% lower than its January peak of $293.
XRP, ranking fourth among digital assets, also faced substantial losses, dropping about 8% in a day. It was recently trading around $2.30, a position that followed news of it becoming available to American investors through a new spot ETF earlier this week.
The extensive liquidation of futures positions reflected the broader turmoil in the crypto market, which has seen an overall decline exceeding 4%, bringing the total market capitalization to approximately $3.35 trillion. Although Bitcoin has slightly rebounded to around $96,000, it remains down about 6.5% for the day.
Market analysts suggest that the industry is currently in a bear market, attributing the downturn to a combination of diminished institutional demand amid macroeconomic and geopolitical uncertainties. As it stands, the cryptocurrency sector is poised for one of its most disappointing fourth quarters in recent history, further indicating that traders may need to brace for continued volatility.
