SEC Blockchain Overhaul Triggers $369 Million Crypto Liquidation Wave
A $369 million liquidation wave hit the cryptocurrency market on Wednesday, September 2, as XRP dropped alongside Ether and Solana. The sell-off was triggered by rising oil prices, which pushed the price of WTI crude oil above $90-$92 per barrel, and Treasury yields, which climbed to around 4.78-4.79%. As a result, market participants increased their probability of a Federal Reserve rate hike on September 16 to 66%, reducing demand for risk assets.
Bitcoin fell to $77,200-$77,600, Ether dropped to $2,410-$2,430, and Solana's price slid below $100 to $98.47. The total crypto market capitalization decreased by 1.4-2.2% from yesterday's highs, losing around $50 billion.
However, institutional inflows into spot Ethereum, Solana, and XRP ETFs remained positive, with net inflows of $10.95 million, $10.19 million, and $14.38 million, respectively. Long-term Bitcoin holders became net buyers for the first time in a month.
The U.S. Securities and Exchange Commission (SEC) initiated a sweeping reform of blockchain infrastructure, adapting rules to public blockchains, tokenized stocks, and artificial intelligence. A major SEC roundtable is scheduled for September 17, where Wall Street leaders and technology giants will discuss the launch of round-the-clock trading in traditional stocks.