Bitcoin experienced a dramatic drop on August 5, 2024, falling from $58,350 to a low of $50,000 within hours. As of the latest updates, the cryptocurrency has partially rebounded, trading at approximately $51,000.
This sharp decline represents a notable downturn for Bitcoin, which had been trading above $60,000 just days prior. The crash has triggered substantial liquidations across the market. According to CoinGlass, over $1.05 billion in leveraged positions were liquidated in the past 24 hours, with $901.42 million attributed to long positions.
The broader cryptocurrency market has also suffered, with Ethereum experiencing a significant drop. Ethereum (ETH) fell more than 18%, from $2,695 to a low of $2,118, before recovering slightly to $2,234.
Several factors have contributed to this market upheaval:
Weak U.S. Jobs Data: A disappointing U.S. jobs report released on Friday has unsettled markets, stoking fears of a potential recession.
Slowed Tech Sector Growth: Recent indications of decelerated growth among leading tech companies have negatively impacted market sentiment.
Concerns About Mass Selling: Speculation about possible mass sell-offs by crypto trading firm Jump Crypto has intensified market uncertainty.
Global Economic Factors: The decline in cryptocurrency prices aligns with a broader sell-off in the Japanese stock market, where the Nikkei 225 dropped by 7.1% during early trading hours.
Despite the current volatility, some analysts remain hopeful about Bitcoin’s long-term potential. They suggest that Bitcoin could benefit from a weaker U.S. dollar and possible Federal Reserve interest rate cuts in the future.
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