- Bitcoin (BTC) price has declined over 10% since July 29, when the cryptocurrency surged toward $70,000 and reached a two-month high after Donald Trump’s remarks in Nashville.
- Bitcoin showcased its correlation to traditional markets on Aug. 1 as the cryptocurrency slumped alongside stocks and market indexes.
Bitcoin (BTC) has declined over 10% since July 29, when the cryptocurrency surged toward $70,000 and reached a two-month high after Donald Trump’s remarks in Nashville. As of this writing, the asset was trading under $63,500.
Bitcoin Drops 10% In 3 Days
BTC’s 7% slump in 24 hours coincided with significant drops in the S&P 500 and Dow Jones market indexes.
Specifically, the Dow Jones Industrial Average fell over 500 points in under an hour.
Several large-cap stocks, such as Amazon and Nvidia, also slipped on Aug. 1 amid market fears of a U.S. recession, according to analysts from The Kobeissi Letter.
Volatility in traditional markets and BTC prices also impacted the broader cryptocurrency ecosystem. CoinGecko data showed that the total crypto market cap shed 6%, dropping to $2.3 trillion after a rebound earlier in the week.
Price swings saw leaders like Ethereum (ETH), Solana (SOL), and Ripple XRP enter a downtrend as capital fled the digital asset industry at press time.
Per CoinGlass, margin positions were unspared by market volatility. Over 105,480 traders were liquidated, and the downturn wiped out $324 million in leveraged positions.
Ether longs led crypto liquidations with $72 million, meaning that traders betting on higher ETH prices received margin calls.
In close second, BTC posted $69 million in long liquidations. SOL, XRP, and Dogecoin (DOGE) were the three most liquidated assets after Bitcoin and Ether.
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