On August 5, Bitcoin suffered a significant crash and dropped to as low as $52,300 after trading at $58,350 for nearly two hours. It has since regained some ground to trade at $53,000, as per CoinMarketCap data at the time of this article’s writing.
Likewise, Ether’s price significantly decreased, plummeting 19.91% from $2,695 to a low of $2,111 within the same period. It has since then risen to $2,331, showing some recovery.
This has led to more than $889 million of the leveraged positions being cleared in the crypto market in the last 24 hours. In detail, about $765 million of leveraged long positions were closed, where ETH longs suffered the most, with more than $276 million, and BTC longs with $230 million, according to CoinGlass data.
Market observers attribute this volatility to other economic aspects such as a 12.7% fall in the Japanese stock market, Nikkei 225, due to the losses in Japanese bank stocks after the central bank decided to increase the interest rates.
In addition, apprehensions over lower than expected U. S. job numbers, deceleration in growth of major tech shares, and signs of mass liquidation from trading firms involved in cryptocurrencies such as Jump Crypto have also contributed to the negative market sentiment.
This recent downturn is the biggest 72-hour loss as it erased between $200 to $500 billion of the total crypto market capitalization for over a year.
This is still a very active situation and investors and analysts are paying close attention as the markets fluctuate and how it may affect the global markets.
Also Read: Trump Suggests Bitcoin as Solution to $35T National Debt
