On August 5, Bitcoin saw a sharp drop. It went down to $52,300 after trading around $58,350 for almost two hours. By the time this article was written, Bitcoin had partially bounced back and was trading close to $53,000, according to CoinMarketCap.
Ether also experienced a significant fall. Its price dropped nearly 20%, from $2,695 to a low of $2,111. Since then, Ether’s price has climbed back to $2,331, showing some recovery.
This drop led to over $889 million worth of leveraged positions being liquidated in the crypto market within the last 24 hours. About $765 million of leveraged long positions were closed. Ether (ETH) longs were the hardest hit, with more than $276 million liquidated, while Bitcoin (BTC) longs faced $230 million in liquidations, as reported by CoinGlass.
Market experts believe this volatility is linked to several economic factors. The Japanese stock market, Nikkei 225, fell by 12.7% due to losses in Japanese bank stocks. This decline followed a rate hike by the central bank. There are also concerns about weaker-than-expected U.S. job numbers and slower growth in major tech stocks. Additionally, signs of large-scale liquidations from crypto trading firms like Jump Crypto added to the turmoil.
This downturn represents the biggest 72-hour loss in over a year. It has wiped out between $200 billion and $500 billion from the total value of the crypto market. The situation is still developing, and investors and analysts are keeping a close eye on how these changes might impact global markets.
Also read: Sen. Lummis Proposes Bill Allowing U.S. States to Hold Bitcoin
