Crypto Market Hits $3.8 Trillion Before Sharp Rejection; What’s Next?

• The total crypto market cap briefly surged to $3.8 trillion before a sharp sell-off.
• CryptoQuant on-chain data shows a wave of aggressive selling and long liquidations, led by Binance
• The market is now testing a critical support zone between $3.4 trillion and $3.64 trillion

The total cryptocurrency market capitalization briefly soared to $3.8 trillion over the last 24 hours, surging to hit $3.8 trillion before hitting a wall of sell pressure. The rally quickly faded as trading volumes dropped by 20%, pulling the market cap back down to now at $3.67 trillion. 

Sell Pressure Dominates Binance

According to analyst Amr Taha, what stopped the crypto market cap surge, can be seen from on-chain data sourced from CryptoQuant that shows a rise in aggressive selling on Binance.

The exchange’s cumulative net taker volume fell sharply below -1.5 billion USD on August 1, a pattern last seen during a similar dip on July 25, which is reflective of a surge in aggressive sell-side orders, primarily driven by a cascade of long liquidations.

Source: CryptoQuant

This suggests that the long positions, likely opened by retail traders during the rebound, were forcef…

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