Ethereum Takes a Tumble: Market Loses $60 Billion in Hours!

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Oh, what a difference a day makes! On Aug. 25, ethereum plummeted to $4,352, mere hours after hitting the glorious heights of $4,900. The market cap took a nosedive from almost $600 billion to a more modest $529 billion. 😱

Market Pullback and Major Liquidations

Just when you thought it was safe to go back into the crypto waters, Ethereum (ETH) took a dive, dropping nearly 7% to $4,415. Its market cap, which had flirted with $600 billion when ETH hit a new all-time high (ATH) of $4,955 on Aug. 24 (2:05 p.m. EST), fell to just above $529 billion. It’s like the market decided to play a game of “how low can you go?” 🕺

But it wasn’t just ETH feeling the chill. A broad wave of bearish sentiment swept through, dragging bitcoin (BTC) and other high-cap altcoins down with it. BTC, which had been on a high after U.S. Federal Reserve Chairman Jerome Powell’s dovish Jackson Hole speech, took a tumble to $110,584, its lowest point since July 10. But don’t worry, it’s back up to $112,000, proving once again that crypto is the ultimate rollercoaster ride. 🎢

Other high-cap altcoins weren’t spared either: XRP dropped 4.3%, SOL (6.8%), DOGE (8.9%), and SUI (9.1%). Even LINK, which had been the star performer of the past week, couldn’t escape the carnage, losing 8% of its value. It’s like everyone decided to cash out and go shopping for new sneakers. 🛍️👟

According to Coinglass liquidation data, ETH’s plunge wiped out $221 million in long positions over 24 hours. That’s a lot of virtual tears and a clear sign that the market’s sudden shift caught many traders off guard. Meanwhile, nearly $45 million in shorts were liquidated, bringing the total liquidations on ETH to a whopping $266.36 million. Ouch! 💥

Institutional Interest Remains Bullish

Despite the volatility, investor sentiment toward ETH remains as bullish as ever. Reports suggest that whales are offloading their BTC to buy ether. One particularly interesting case involves a bitcoin OG who received 100,784 BTC seven years ago. Over the past six days, this OG has been “frantically dumping” BTC to buy ETH. According to a post on X by Lookonchain, the OG has offloaded ~22,769 BTC on Hyperliquid and used the proceeds to buy 472,920 ETH spot and opened a 135,265 ETH long position. Talk about a major pivot! 🤸‍♂️

The volatility hasn’t deterred institutions from piling in. Bitmine Immersion Technologies (BMNR) announced on Aug. 25 that it had purchased an additional 190,500 ETH tokens, bringing its total holdings to 1.71 million ETH. Bitmine Chairman Thomas Lee commented on the company’s ability to secure significant funding, stating, “This is the second week that BitMine has been able to raise capital from institutional investors at this pace, as we pursue the ‘alchemy of 5%’ of ETH. At BitMine, we are leading our crypto treasury peers by both the velocity of raising crypto NAV per share and by the high trading liquidity of our stock.” It’s like they’re saying, “Bring it on, market, we’ve got this!” 🌟

A growing consensus among experts suggests that the trend of institutions adding ETH to their digital asset treasuries, coupled with sustained inflows from exchange-traded funds, signals a strong upside potential for the digital asset. With the $5,000 price point now looking more like a formality, many supporters of Ethereum are setting their sights on $10,000, a milestone that would push ETH’s market capitalization well past the $1 trillion mark. Bring on the champagne! 🥂

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2025-08-26 00:39