Bitcoin Price Decline:
Bitcoin witnessed a significant drop on Aug. 5, falling to $49,221 after trading around $58,350 for almost two hours. At present, BTC has a daily trading volume of $79.5 billion and a market cap of $1.04 trillion, showing a 28.2% decrease from its all-time high of $73,737 on March 14.
Ethereum Market Turmoil:
In line with Bitcoin’s decline, Ethereum (ETH) also saw a drop of nearly 20%, falling from $2,695 to a low of $2,171 before recovering slightly to $2,321. This market volatility resulted in over $1.07 billion in leveraged positions being liquidated within the last 24 hours, with Bitcoin and Ethereum long positions taking the hardest hits.
External Economic Factors Impacting Cryptocurrency:
The sudden market turbulence is attributed to several external economic factors, including a 7.1% drop in the Japanese stock market index, disappointing U.S. job figures, slowdown in major technology stocks’ growth, and reports of extensive liquidations by cryptocurrency trading firms. This recent downturn erased $200 to $500 billion from the total cryptocurrency market capitalization.
