what’s behind the broad crypto market downturn today？
Crypto prices had a poor session, despite major macro assets remaining flat in a holding pattern. BTC ETFs saw a very large $127 million in outflows as traders appeared to take profit after the Jackson Hole rally, while ETH continued its poor momentum with the 9th consecutive day of outflows as the Ethereum mainnet remains caught in a bit of an identity crisis.
The sudden sell-off has caught market participants by surprise, with long futures liquidation seeing almost $300mm in stop-loss selling, the largest since early August. Short-dated volatility was bid, with traders scrambling to buy downside protection (puts), as underlying momentum remains poor from the supply overhang and lack of on-chain catalysts in the near term.