Radhika Parashar
- Bitcoin has sunk to a six-week low
- Analysts have attributed the slowdown to renewed sell-off pressures
- Current crypto market valuation stands at $3.8 trillion
Bitcoin on Tuesday, August 26 sunk to a six-week low amid the ongoing period of market volatility. The asset registered a loss of under two percent in the last 24 hours to trade at $110,300 on international exchanges. The development comes at a time when the crypto market reportedly clocked over $900 million in liquidations from around 200,000 traders over the last day.
Speaking to CoinHeadlines, the CoinSwitch markets desk said that the ongoing bearish cycle could run longer than typical amid renewed sell-off pressures.
“A whale’s offload of approximately 24,000 BTC triggered abrupt liquidations — with Bitcoin plunging from above $117,000 to levels near $110,000, failing to cling to the earlier dovish Powell-fuelled momentum,” the CoinSwitch team said. “Beyond price swings, the emergence of crypto treasury companies—now holding nearly one million BTC collectively—is creating a supply squeeze, with exchange reserves dipping below 15 percent, a level unseen since 2018.”
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Ether followed Bitcoin on the loss-side of the crypto chart on Tuesday. In the last 24 hours, ETH clocked losses of upto six percent to trade at $4,420, CoinMarketCap showed.
“Despite its rally, ETH wasn’t immune: a near six percent retreat from the peak underscores rising volatility and profit-taking, while derivatives data reveals elevated short interest amid a resilient long-term bullish narrative—corporate treasuries continued to accumulate, tightening supply further,” the CoinSwitch team added.
Data by CoinMarketCap showed most of the top ten cryptocurrencies trading in losses. These include Ripple, Binance Coin, Solana, USDC, Tron, Dogecoin, Cardano, and Chainlink among others. Meanwhile, Cronos joined Aave, Monero, and Confulx among a small number of altcoins that managed to clock minor profits.
The overall crypto market cap dropped by over three percent in the last 24 hours to its current valuation of $3.8 trillion.
“Despite the ongoing slowdown, Bitcoin futures open interest climbed to an all-time high, up 13 percent from two weeks earlier. Meanwhile, institutions such as Strategy are buying the dip, accumulating about 3,081 BTC. This increase in trading activity could help Bitcoin to break above the immediate resistance level of $112,500. On the downside, BTC could test the $105,000 support before a relief rally,” Edul Patel, Co-founder and CEO of Mudrex told CoinHeadlines.
