Crypto stocks and miners slide, with MSTR and Coinbase under pressure.
The crypto market turned defensive as traders sized up hawkish macro data and tumbling crypto stocks.
Sentiment soured after the US GDP revision, with investors recalibrating their bets on a Fed rate cut. Bitcoin and major altcoins slid, dragged by the specter of sticky interest rates and souring risk appetite.
The recent drop punctuates a volatile week, but for many, it’s more a tactical retreat than a full-on capitulation.
With liquidations mounting and market leaders under pressure, eyes now turn to next week’s economic releases to see if crypto can recapture its footing.
Bitcoin, the market’s heavyweight, has slipped below $111,000 and is trading just above $108,000 at press time, its weakest print in September.
Volume surged as sell orders hit exchanges, with the market cap now sitting at $2.17 trillion and daily turnover topping $75.54 billion.
Ethereum fared worse, shedding 8% in a day as the ETH/BTC ratio gave back all its summer gains.
Solana, previously a darling amid corporate adoption chatter, dropped another 6% in the past 24 hours, and is now nearly 20% down on the week.
DOGE limped lower with the pack, unable to shake off risk-off sentiment. XRP, meanwhile, mirrored the sector’s slide, as hopes for a rate-induced bounce faded.
This synchronized selloff triggered over $1.1 billion in liquidations on leveraged positions, with ETH longs accounting for nearly $400 million in forced closes, according to CoinGlass data.
Despite the selloff, trading volumes remain robust, as speculators and long-term holders alike reposition for the coming months.
Thursday’s surprise GDP revision jolted macro-sensitive assets, and the crypto sector was front and center.
The US economy grew 3.8% in Q2, well above expectations, sending Treasury yields to a three-week high and cooling bets on imminent rate cuts.
Bitcoin was hit hardest, breaching $109,000 and touching its lowest in nearly a month.
Ethereum’s losses deepened as investors bailed on high-beta alts. Crypto-tied stocks like MicroStrategy (MSTR), the largest corporate BTC holder, slid 4.5%, while Coinbase (COIN) tumbled 4.1%.
Miners took an even bigger hit: Cipher Mining (CIFR) plunged 9.4% despite positive news, while HIVE, Bitdeer, and Bitfarms dropped by 6-8% each.
Stablecoin issuer Circle (CRCL) and Galaxy Digital (GLXY) extended industry-wide declines. August trading volumes soared, spot and derivatives hit an annual high of $9.72 trillion, with Gate exchange leaping ahead in market share.
But liquidations kept mounting as leveraged longs were wiped out in the latest downturn, and crypto equities are now sitting at multi-month lows.
All eyes are on Friday’s data releases and next week’s Fed commentary to see if battered risk assets find relief, or prepare for another round of turbulence.
