Altcoins have plummeted further this week, continuing their months-long decline. The total value of all cryptocurrencies has dropped from $2.39 trillion to $2.32 trillion, losing a staggering $70 billion.
Liquidations Hit Altcoin Traders
According to Coinglass, over $242 million worth of altcoin positions have been liquidated, primarily due to traders attempting to profit from long positions. Dogecoin (DOGE) traders have been the hardest hit, with other memecoins like Shiba Inu (SHIB) also facing significant losses.
DeFi Sector Faces Bloodbath
The decentralized finance (DeFi) sector has been particularly hard hit, with several coins reaching or nearing all-time lows. DYDX, the token for the Ethereum-based DEX, has plunged 95% from its peak. Curve Finance (CRV) also reached an all-time low last week after its founder faced $100 million in liquidations.
Institutional Investors Withdraw Funds
Digital assets manager CoinShares reports that institutional investors withdrew over $600 million from exchange-traded products (ETPs) last week, likely due to the hawkish tone of the recent Federal Open Market Committee (FOMC) meeting.
This withdrawal has led to a decline in total assets under management (AuM) from over $100 billion to $94 billion.
