{"id":32222,"date":"2025-09-23T03:54:07","date_gmt":"2025-09-23T03:54:07","guid":{"rendered":"https:\/\/www.newsbeep.com\/il\/32222\/"},"modified":"2025-09-23T03:54:07","modified_gmt":"2025-09-23T03:54:07","slug":"crypto-markets-show-weakness-as-investors-rotate-into-stocks","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/il\/32222\/","title":{"rendered":"Crypto Markets Show Weakness As Investors Rotate Into Stocks"},"content":{"rendered":"<p><img decoding=\"async\" class=\" top-image\" src=\"https:\/\/www.newsbeep.com\/il\/wp-content\/uploads\/2025\/09\/1758599647_630_960x0.jpg\" alt=\"Physical units of bitcoin, ether, and other digital currencies\" data-height=\"1625\" data-width=\"2438\" fetchpriority=\"high\" style=\"position:absolute;top:0\"\/><\/p>\n<p>Crypto markets have taken a tumble lately. <\/p>\n<p>getty<\/p>\n<p>Cryptocurrencies have suffered declines lately, taking a beating as investors use them as a source of liquidity to purchase other assets, according to multiple analysts. This development caused a more severe decline by triggering the liquidation of many long positions. <\/p>\n<p>\u201cRight now, the primary driver of the decline in Ethereum, Bitcoin, and the crypto market in general is opportunity cost,\u201d Tom Bruni, editor-in-chief &amp; VP of community at <a class=\"color-link\" href=\"https:\/\/stocktwits.com\/\" target=\"_blank\" rel=\"nofollow noopener noreferrer\" data-ga-track=\"ExternalLink:https:\/\/stocktwits.com\/\" aria-label=\"Stocktwits\">Stocktwits<\/a>, stated via email. <\/p>\n<p>\u201cIn the equity market, there is strong momentum across sectors and industries, as the U.S. stock market indexes make new all-time highs,\u201d he added. <\/p>\n<p>The market observer made this statement after the benchmark S&amp;P 500 index climbed to almost 6,700 on Monday, September 22, <a class=\"color-link\" href=\"https:\/\/www.google.com\/finance\/beta\/quote\/.INX:INDEXSP\" target=\"_blank\" rel=\"nofollow noopener noreferrer\" data-ga-track=\"ExternalLink:https:\/\/www.google.com\/finance\/beta\/quote\/.INX:INDEXSP\" aria-label=\"Google Finance data\">Google Finance data<\/a> reveals. <\/p>\n<p>The same day, several digital currencies took a tumble, with ether, the second largest by total market capitalization, falling roughly 9% from approximately $4,450 to $4,050, according to <a class=\"color-link\" href=\"https:\/\/www.tradingview.com\/chart\/6owoY9ra\/?symbol=COINBASE%3AETHUSD\" target=\"_blank\" rel=\"nofollow noopener noreferrer\" data-ga-track=\"ExternalLink:https:\/\/www.tradingview.com\/chart\/6owoY9ra\/?symbol=COINBASE%3AETHUSD\" aria-label=\"Coinbase data from TradingView\">Coinbase data from TradingView<\/a>. Bitcoin also pushed lower, approaching $111,500. <\/p>\n<p>Bruni explained further, indicating that \u201cFor Ethereum and Altcoins as a group, their 2021 highs remain the ceiling on prices, keeping prices rangebound. As a result, traders and investors are using crypto as a source of liquidity to fund other trades, waiting for fresh all-time highs (or heavily discounted prices) to lure them back into the market.\u201d <\/p>\n<p>George Kailas, CEO of <a class=\"color-link\" href=\"https:\/\/www.prospero.ai\/\" target=\"_blank\" rel=\"nofollow noopener noreferrer\" data-ga-track=\"ExternalLink:https:\/\/www.prospero.ai\/\" aria-label=\"Prospero.ai\">Prospero.ai<\/a>, also weighed in on this matter, specifying via email that \u201cThe largest trade in the history of $MAGS (the Magnificent 7 ETF) took place last Friday, and within just a few trading days, $GOOG, $SPY, $BAI (the artificial intelligence ETF), $AVGO, and $NDAQ all recorded their largest trades ever as well.\u201d <\/p>\n<p>\u201cNormally, you wouldn\u2019t expect a more optimistic rate environment to coincide with Crypto selling off,\u201d he continued. \u201cTo me, though, it makes sense in the context of what\u2019s happening.&#8221;<\/p>\n<p>\u201cAfter such an epic run-up in Crypto, we may now be seeing profit-takers rotate back into stocks,\u201d said Kailas. <\/p>\n<p>Massive Crypto Liquidation <\/p>\n<p>Several analysts commented on the massive liquidations of leveraged positions that have taken place recently, which helped fuel significant declines in crypto values. <\/p>\n<p>&#8220;It appears that late last night, on 9\/21\/2025, $1 billion in Bitcoin longs were liquidated within an hour, prompting a reaction from the crypto market, which saw approximately $1.7 billion in liquidations across both longs and shorts over the last 24 hours, the YouTuber who goes by Wendy O stated via email. <\/p>\n<p>Kailas also offered his perspective on this sharp depreciation. When asked specifically about ether and the 9% decline it suffered on September 22, he stated that \u201cWhales selling pulled some of the initial momentum out of ETH, which then accelerated as trading bots, stop-loss triggers, and retail traders panicking on bigger moves all followed suit.\u201d<\/p>\n<p>\u201cThe fact that there were already a lot of leveraged long positions made the decline unfold even faster,\u201d he continued. <\/p>\n<p>Mike Maloney, CEO and Founder of <a href=\"https:\/\/daa19a30.streaklinks.com\/ClwPkimaGkUbisRF4AEu_HTF\/https%3A%2F%2Fwww.incyt.xyz%2F\" target=\"_blank\" rel=\"nofollow noopener noreferrer\" data-ga-track=\"ExternalLink:https:\/\/daa19a30.streaklinks.com\/ClwPkimaGkUbisRF4AEu_HTF\/https%3A%2F%2Fwww.incyt.xyz%2F\" aria-label=\"Incyt\">Incyt<\/a>, also weighed in, specifying that \u201ca huge liquidation across crypto markets is thinning the herd of long investors, and washing the price out. Of course some of this is from happy investors cashing in on ATHs.&#8221; <\/p>\n<p>\u201cThis creates a great entry point once it consolidates around $4,000, and we can expect another push up in a few days,\u201d he said, offering a positive short-term outlook. <\/p>\n","protected":false},"excerpt":{"rendered":"Crypto markets have taken a tumble lately. getty Cryptocurrencies have suffered declines lately, taking a beating as investors&hellip;\n","protected":false},"author":2,"featured_media":32223,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[114,27203,2614,22926,27202,85,46,190,5268],"class_list":{"0":"post-32222","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-markets","8":"tag-business","9":"tag-crypto","10":"tag-cryptocurrencies","11":"tag-digital-assets","12":"tag-digital-currencies","13":"tag-il","14":"tag-israel","15":"tag-markets","16":"tag-stocks"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/32222","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/comments?post=32222"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/32222\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media\/32223"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media?parent=32222"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/categories?post=32222"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/tags?post=32222"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}