Bitcoin Flash Crash Pauses Ether Rally and Affects Altcoin Market
Bitcoin (BTC) has retraced to approximately $112,000 after a brief spike following Federal Reserve Chair Jerome Powell’s remarks. This decline halted the rally in ether (ETH) and caused losses in the altcoin market, with the CoinDesk 20 Index down 3% and the CoinDesk 80 Index down 3.74%.
Key observations include:
- BTC fell to $110,000, its lowest since July, as liquidity shifts towards altcoins like ETH and Solana.
- Blockchain analytics firm Lookonchain noted a significant bitcoin whale is diversifying into ETH.
- QCP Capital remains optimistic on BTC despite short-term momentum favoring ETH.
- Metaplanet acquired an additional 103 BTC, raising total holdings to 18,991 BTC.
- Hyperliquid announced record spot trading volume of $3.4 billion due to increased BTC and ETH deposits.
Market movements show:
- BTC is down 4.45% at $111,825.43.
- ETH is down 4.84% at $4,612.09.
- CoinDesk 20 index decreased by 4.23% at 4,125.81.
- DXY rose 0.19% to 97.90.
In derivatives, BTC futures open interest increased alongside price drops, indicating a potential downtrend. Ether options also saw record high notional values, suggesting institutional interest remains strong.