Bitcoin plummeted to $49221 on 5th August after having been at a value of about $58,350.
Bitcoin is currently the most popular cryptocurrency (BTCThe daily volume for, which was 79.5 billion dollars in the past year, had decreased to 1.00 trillion. This crypto-asset is still down by 28.2% compared to its previous high, which was $73,737 on March 14th.
It was part of the broader downturn in markets that saw Ethereum also (ETHAccording to data provided by crypto.news, the price of bitcoin fell nearly 20% from 2,695 dollars to as low as $2,171. It then recovered marginally to $2 321,
In the past 24 hours this market turmoil has resulted to the liquidation over $1.07billion in leveraged position, the majority of which are leveraged long positions. CoinGlass’ data shows that Bitcoin and Ethereum positions with long-term holdings were most affected, losing $305.49m and $299.45m, respectively.
Analysts attribute this abrupt market volatility to a number of external economic factors. The Nikkei index dropped 7.1% in Japan following the increase in interest rates. This was largely due to the significant decline in Japanese bank stocks.
Additional pressures were received from disappointing job figures in the U.SJump Crypto and other cryptocurrency firms have reported large-scale liquidations.
This latest downturn is the biggest 72-hour decline in more than a year. It has erased between $200 and $500 billion off the market capitalization of all cryptocurrencies.
In the chaos of the markets, the Bitcoin Fear and Greed Index took a sharp dive, dropping from 74 last week, which indicated a market that was greedy. Simultaneously U.S.-based Bitcoin ETFs have seen significant withdrawals. The net amount was approximately $237,000,000 on Friday.
Bitcoin’s dominance index grew to 56.23 %, which is its highest value since May 2021. This indicates that Bitcoin has become more consolidated compared to the other cryptocurrencies.
Analysts also suggest that there is a possibility of a market crash. escalating conflict The tensions between Iran and Israel may affect the global markets, affecting cryptocurrency market as investors look for safer assets.
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Source: crypto.news