On August 5th, the cryptocurrency market witnessed a dramatic downturn as Bitcoin (BTC) plummeted to as low as $52,500, marking a steep 10% drop from its recent high of $58,350 in just under two hours. As of the latest data from TradingView, Bitcoin has partially recovered and is currently trading at $54,384.
Meanwhile, Ether (ETH) also suffered a significant decline, falling 18% from $2,695 to a low of $2,118 within the same timeframe. ETH has since rebounded to $2,358, showing some resilience amidst the volatile market conditions.
The sudden crash has resulted in the liquidation of over $740 million in leverage positions across the crypto market within the past 24 hours. Of this amount, approximately $644 million came from leveraged long positions, highlighting the severity of the sell-off.
Interestingly, leveraged traders seeking exposure to Ether were particularly affected, with more than $256 million in ETH long positions liquidated, compared to $231 million in BTC longs.
This market turbulence coincided with broader economic uncertainties, including a sharp sell-off in the Japanese stock market. The Nikkei 225 index saw a 7.1% decline early on, driven by concerns over a decision by Japan's central bank to increase interest rates, impacting bank stocks significantly.
Analysts have also pointed to weaker-than-expected jobs data in the United States and sluggish growth among leading tech companies as contributing factors to the market volatility. Additionally, there are concerns about substantial selling pressure from entities like Jump Crypto, a prominent crypto trading firm.
In the aftermath of this downturn, the total crypto market capitalization saw a staggering wipeout of up to $500 billion over the past three days, marking the largest 72-hour loss in well over a year.
As market participants assess the implications of these developments, attention remains focused on whether Bitcoin and Ether can stabilize amid ongoing economic uncertainties and regulatory challenges in the cryptocurrency space.
August 2024, Cryptoniteuae