Crypto Market Crash: Over $161 Million Liquidated as Bitcoin Price Dips Further

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The crypto market cap, led by Bitcoin (BTC), dropped nearly 3 percent in the past 24 hours to hover about $2.11 trillion on Monday, September 2, during the early Asian session. After closing last month below the crucial support range between $58k and $60k, Bitcoin price opened this week with a bearish outlook. 

The flagship coin dropped 3 percent on the first day of September to trade at about $57,343 at the time of this writing. Following the heightened crypto volatility, more than $161 million was liquidated from leveraged markets in the past 24 hours, mostly involving long traders.

Investors Flee Bitcoin to Stablecoins Market

As Bitcoin price signaled further bearish sentiment in the near term, on-chain data shows more investors have been fleeing the crypto market to protect capital through the stablecoins space. Furthermore, Bitcoin’s fear and greed index dropped to 26 percent, denoting extreme fear of further price capitulation in the near term.

According to on-chain data provided by Glassnode, the Exchange Volume Momentum indicator shows a sustained drop in trading activity, indicating lower investor interest in Bitcoin.

Furthermore, the US spot Bitcoin ETFs have registered four consecutive days of losses after a net cash outflow of over $175 million on Friday, led by ARK 21Shares Bitcoin ETF (ARKB) and Grayscale’s GBTC.

Midterm Expectations 

After closing last week below crucial support levels, the Bitcoin price is expected to continue in a bearish outlook in the coming weeks. Moreover, historical data shows that Bitcoin prices tend to perform poorly in September, especially after the halving event.

As a result, crypto analyst Alan Santana anticipates a further drop in Bitcoin’s price to the liquidity range between $38k and $43k. 

“No bullish signals are present. Everything is extremely bearish. Run for your life,” the crypto analyst concluded.