Group 1: Ethereum Price Decline - Ethereum, the second-largest cryptocurrency, experienced a significant price drop, with a maximum intraday decline of nearly 5%, falling below the psychological threshold of $4000, reaching a low of $3969, marking a seven-week low [1][3] - The overall cryptocurrency market saw a loss of over $140 billion in market capitalization, with more than 130,000 liquidations occurring globally within 24 hours, amounting to approximately $414 million [3][4] - Analysts attribute the price drop primarily to a decrease in institutional fund inflows, with nearly $300 million withdrawn from U.S.-listed Ethereum ETFs since Monday [4][5] Group 2: Market Dynamics and Investor Behavior - Despite a decrease in Ethereum supply on exchanges to a nine-year low, indicating long-term holders are accumulating, their selling behavior is counteracting the positive impact of new fund inflows, leading to a tug-of-war between bullish and bearish forces [6] - The active user metrics for Ethereum have been rising, suggesting that long-term holders are selling rather than accumulating [7] - Market analysts warn that if Ethereum falls below $3800, it could trigger further liquidations, exacerbating the downward trend [6] Group 3: Broader Market Context - The cryptocurrency market is currently digesting one of the largest liquidation events of the year, with traditional financial markets performing better post-Fed rate cuts, contrasting with the poor performance of cryptocurrencies [9] - The sentiment among traditional investors towards cryptocurrencies appears to be waning, as evidenced by the decline in stock prices of crypto financial companies since August [9] Group 4: Naver's Acquisition Plans - South Korean internet giant Naver is reportedly in talks to acquire Dunamu, the operator of the largest cryptocurrency exchange Upbit, aiming to enter the digital finance sector [11][12] - Naver's stock surged over 11% following the news, indicating strong market interest in the potential collaboration [12] - This partnership could significantly merge the tech and crypto industries in South Korea, enhancing the distribution capabilities of Naver's digital wallet, Naver Pay, with Upbit's market dominance [15]

Core Viewpoint - The cryptocurrency market is experiencing a significant downturn, particularly with Ethereum's price dropping below the psychological threshold of $4000, leading to widespread liquidations and a loss of market confidence [2][4][6]. Market Performance - Ethereum's price fell sharply, reaching a low of $3969, marking a seven-week low, with a daily decline of 3.97% to $4011.4 as of 18:50 [4]. - The overall cryptocurrency market saw a loss exceeding $140 billion in market capitalization, with over 130,000 liquidations totaling approximately $414 million [4][5]. Institutional Impact - Analysts attribute Ethereum's price drop to a cooling of institutional fund inflows, with nearly $300 million withdrawn from U.S.-listed Ethereum ETFs since Monday [5][6]. - The net inflow for Ethereum ETFs in September was only $11 million, a stark contrast to over $3.8 billion in August [5]. Market Sentiment - There is a warning that if Ethereum falls below $3800, it could trigger further liquidations, despite a decrease in supply indicating long-term holders are accumulating [6]. - The active user metrics for Ethereum are rising, suggesting that long-term holders are selling rather than accumulating, contributing to market volatility [6]. Broader Market Context - The recent downturn in cryptocurrency prices occurred after the Federal Reserve announced a 25 basis point rate cut, contrasting with the performance of traditional assets like gold and stocks, which have fared better [9]. - Market analysts express concerns about the fragility of the current cryptocurrency landscape, emphasizing the need for Bitcoin to maintain levels above $115,000 to avoid deeper declines [8]. Corporate Developments - South Korean internet giant Naver is in talks to acquire Dunamu, the operator of the largest cryptocurrency exchange Upbit, indicating a significant move into the digital finance sector [11][12]. - Naver's potential acquisition could enhance its digital wallet service, Naver Pay, by integrating it with Upbit's market position, potentially accelerating the adoption of digital assets in financial services [12].