Cryptocurrency markets are having a volatile Wednesday, with the global market capitalization briefly dropping below the $2 trillion mark. Bitcoin (BTC) is trading at $58,000 after dipping as low as $56,000 earlier in the day, while Ethereum (ETH), the second largest cryptocurrency, is changing hands at $$2,450 after bouncing from an intraday low of $2315. According to CoinGlass, over the last 24 hours, more than 71,000 leveraged traders faced liquidations amounting to $188.19 million. The largest single liquidation took place on Binance, the world’s largest crypto exchange by trading volume, for the ETH-USDT pair, valued at $2.94 million, with Bitcoin and Ethereum long positions worth $40 million also being liquidated. On September 4, the total value of outstanding contracts in the Bitcoin futures market decreased to roughly $29 billion, a 22% drop from the $37.5 billion peak in July. This indicates that traders have reduced confidence in Bitcoin’s short-term price prospects. Historically, September has been a tough month for Bitcoin. A pseudonymous crypto analyst known as Aylo on X said that the future direction of the market hinges significantly on how quickly the Federal Reserve will lower interest rates to stabilize financial markets. “Moving forward, it's now a matter of how fast the FED will decrease rates... the macro setup continues to make me bullish. Again, we just need more time,” the analyst wrote. Meanwhile, Polkadot (DOT) is relatively unchanged, while Solana (SOL) is up 2% on the day. Solana, in particular, recorded a 6% decline over the past week, partly due to ongoing sales from the memecoin launchpad Pump.fun. On Wednesday, the Pump.fun fee account sold $1.38 million worth of SOL, as reported by Lookonchain. Among the top 100 cryptocurrencies by market cap, Helium (HNT) rose by 3%, while Starknet (STRK) and Uniswap (UNI) gained 3% and 2%, respectively. ThorChain (RUNE), Notcoin (NOT), and Cosmos (ATOM) were among the biggest losers. Bitcoin and Ethereum ETFs Record Outflows As the market plunged, spot Bitcoin ETFs recorded net outflows of $287.8 million on Sep. 3, according to Farside Investors data. The Grayscale Bitcoin Trust (GBTC) ETF logged an outflow of $50.4 million, while the Fidelity Bitcoin Trust (FBTC) reported an even larger outflow of $162.3 million. Ethereum spot ETFs also recorded a total net outflow of $47.4 million. The Grayscale Ethereum Trust (ETHE) ETF logged outflows of $52.3 million, somewhat offset by the Fidelity Ethereum Trust (FETH) ETF, which recorded inflows of $4.9 million. Meanwhile, the S&P 500 hovered near the flatline on Wednesday. The broad market index traded slightly lower, down 0.2%, while the Dow Jones Industrial Average slipped 0.1%, and the Nasdaq Composite traded flat. Atlanta Federal Reserve President Raphael Bostic commented on the state of the economy, noting that the central bank is in a favorable position but should avoid maintaining a restrictive policy stance for too long. "Soft landing for the economy may be within reach," Bostic said. "Most recent inflation reports bolster my confidence that inflation is likely on a sustainable path back to 2%."