Bitcoin experienced a plunge on August 5, 2024, dropping from $58,350 to a low of $50,000 in a matter of hours.
The leading cryptocurrency has since slightly recovered and is trading at $51,000 at the time of writing, according to the latest market data.
This sudden crash marks a significant downturn for Bitcoin, which had been trading above $60,000 just days ago.
The sharp decline has resulted in massive liquidations across the market. Data from CoinGlass reveals that over $1.05 billion in leveraged positions were wiped out in the last 24 hours, with long positions accounting for $901.42 million of that total.
Source: Coinglass
The crypto market as a whole has been bleeding red, with other major assets like Ethereum also experiencing substantial losses. Ethereum (ETH) plummeted over 18% from $2,695 to as low as $2,118 before recovering slightly to $2,234.
Several factors have contributed to this market downturn:
1. Weak U.S. jobs data: A weaker-than-expected U.S. jobs report released on Friday has spooked markets across the board, raising fears of an impending recession.
2. Slowed growth among tech companies: Market-leading tech companies in the stock market have shown signs of slowed growth, impacting overall market sentiment.
3. Concerns about mass selling: Rumors of potential mass selling from crypto trading firm Jump Crypto have added to market uncertainty.
4. Global economic factors: The sharp downturn in crypto asset prices coincided with a sell-off in the Japanese stock market, with the Nikkei 225 down 7.1% in early trading hours.
Despite the current market turbulence, some analysts remain optimistic about Bitcoin’s long-term prospects.
Additionally, some experts believe that Bitcoin could ultimately benefit from a weaker U.S. dollar and potential Federal Reserve interest rate cuts.
Source Agencies
