On the night of August 5, the first cryptocurrency collapsed by almost 13%. For a short time, the coin dropped to $49,000.
The 15-minute BTC/USDT chart of the Binance exchange. Data: TradingView.At the time of writing, digital gold has recovered slightly and is trading at $52,700.
According to CoinGecko, its capitalization is about $1 trillion. The total index of the crypto market fell to $1.88 trillion.
Following bitcoin, other digital assets from the top 10 went into the "red zone". Ethereum fell by 22%, failing $ 2,300.
Data: CoinGecko.Solana sank below $120 (-39%), BNB is trading at $430 (-29%), and TON is around $5.1 (-25%).
According to Coinglass, over the past 24 hours, the volume of liquidations has reached $1.05 billion. Of these, $902 million fell on long positions.
Liquidation card. Coinglass data.What's going on with Bitcoin?
Probably, the main driver of the correction was the ongoing collapse in the US stock market since last week, caused by the aggravation in the Middle East.
CryptoQuant analysts drew attention to the loss of the $57,000 resistance level and did not rule out a further drop to $40,000.
#Bitcoin dropped over 16% in the last 24 hours, breaking below the $57K support level.
This breach suggests a possible drop to $40K.
Currently, traders are facing their most negative unrealized profit margins since November 2022. pic.twitter.com/gTWT52NO60
"Traders are currently facing the most negative unrealized gains since November 2022," the experts added.
The founder of MN Trading, Michael van de Poppe, said that such days "usually determine the minimum or the beginning of a big crisis."
These days typically define the low or the start of a big crisis.
It's binary.
Either V-Shape back up and it's going to rotate towards $BTC as safe haven alongside Gold & $ETH taking over with DeFi as the safe haven for banking systems.
I think we're rolling into that.
"Either the V-figure will return and turn towards bitcoin as a safe haven, along with gold and Ethereum, which will take over, and DeFi will become a safe haven for banking systems. I think we're rolling into this," he wrote.
The network is also discussing the possible involvement of the Jump Crypto market maker in the market dump. On August 4, the company unlocked 120,000 wETH in Lido and sold most of them to the current moment, which negatively affected the second largest cryptocurrency by capitalization.
My TradFi birdies are telling me somebody big got smoked, and is dumping all #crypto. No idea if this is true, I won't name names, but let the fam know if you are hearing the same?????
— Arthur Hayes (@CryptoHayes) August 5, 2024"My TradFi-birds tell me that someone big got stoned and drains all the cryptocurrency. I have no idea if this is true. I won't name names, but let the family know if you hear the same thing," said Arthur Hayes, ex—CEO of BitMEX.
Peter Schiff, President of Euro Pacific Capital, did not miss the opportunity to mock the market. According to him, many bitcoin investors are "in denial."
Based on the comments on my posts, #Bitcoin #HODlers are in denial. You guys are whistling past a #crypto graveyard. Don't say I didn't warn you.
— Peter Schiff (@PeterSchiff) August 4, 2024"You guys are rushing past the crypto cemetery. Don't tell me I didn't warn you," he said.
The market is still negatively affected by the potential sale of Mt.Gox assets. Although Glassnode believes that most of the recipients of funds are hodlers. This potentially eases the pressure in the coming weeks.
The weak dynamics of spot Ethereum ETFs and changes in the US presidential race could negatively affect the market.
Recall that QCP Capital expects more significant fluctuations in Ethereum prices — the monthly premium for the volatility of the asset in "long-range" options has increased from 4% to 8%.
Earlier, BRN analyst Valentin Fournier said that companies mining the first cryptocurrency have probably started a new phase of coin accumulation.