The crypto market has experienced a significant downturn, with altcoins such as Ethereum, Solana, XRP, DOGE, PEPE, and others witnessing a sharp decline. While Bitcoin has maintained a stable price, major altcoins and meme coins have seen a selloff. This article explores the recent market developments and potential reasons behind the recent slump.

Crypto Market Slump: What's Behind the Recent Decline?

Several factors could be contributing to the recent decline in the crypto market, particularly among altcoins. Here, we examine some of the key reasons behind the recent selloff.

Whales Cash Out

The crypto market has seen significant gains over the past few days, fueled by anticipation over the Spot Ethereum ETF and regulatory developments. With the pro-crypto sentiment amid the U.S. Presidential election buzz, investors seem to be shifting their focus towards profit-booking strategies due to recent surges.

A notable Ethereum whale transaction has raised eyebrows today, highlighting potential profit-taking activities by large holders. This move follows a trend where the whale previously shifted a substantial amount of ETH from Binance, ultimately selling a portion for a significant profit two months prior.

Whale movements often trigger selloffs among retail investors, underscoring the impact of large holders on crypto markets.

ETF Hype and Regulatory Uncertainty

The Spot Ethereum ETF hype, especially after the regulatory nod by the SEC, has sent the Ethereum price higher over the past few weeks. However, despite the soaring optimism, several crypto market analysts have provided different outlooks over the potential performance of the investment instrument.

Some market watchers are bullish on the Ethereum price following the start of the Ethereum ETF trading, while others anticipate a different picture. For context, some market pundits anticipate that the U.S. Spot Ethereum ETF will not get as much traction as the U.S. Bitcoin ETFs.

Cautions in the Meme Coin Sector

Ark Invest CEO Cathie Wood has provided a mixed outlook on the SEC’s stance on the ETF approval process. She suggests that the regulatory nod for the Ethereum ETF could be only due to the U.S. election issue.

Additionally, she mentioned that although an ETF for Solana might get approved by the SEC, meme coins ETF are unlikely to follow the same path. Amid this, meme coins like Dogecoin, Shiba Inu, Pepe Coin, and others have noted sharp declines today.

Profit-Booking Opportunities

The recent surge in meme coins has also provided a profit-booking opportunity for the crypto market participants. According to a recent report by Lookonchain data, a whale has deposited 660.7 billion of Pepe Coin, worth $9.52 million, to Binance today.

Notably, Pepe Coin has reached a new high recently, allowing the whale to book a profit of $4.95 million with his recent selling, with an ROI of 52%. According to IntoTheBlock data, 90% of the PEPE holders are now in profit, making it one of the most profitable among major meme coins.

Crypto Market Profit of Shareholders

The crypto market has been volatile lately, with investors seeking more clarity on the sector. The recent surge in crypto prices, especially meme coins, has provided an opportunity to liquidate the holdings to book substantial profit for the investors.

As of writing, the global crypto market cap was down about 2% to $2.51 trillion, after reaching $2.57 trillion over the last 24 hours. Talking about the individual cryptos, Ethereum price was down 2.51% to $3,716.64, while Solana price witnessed a slump of 2.37% to $165.12.

According to CoinGlass data, 72,546 traders were liquidated in the last 24 hours, with the total liquidation amount totaling $155.26 million. Over the last 24 hours, Ethereum has noted a liquidation of $26.82 million, with long-liquidation at $18.60 million, and short liquidation at $8.22 million.