Bitcoin is the leading cryptocurrency, has experienced a significant drop of 10%, falling to $52,000 after trading at $58,350 for nearly two hours on August 5. This decline in price comes in the context of broader global market anxiety.
In addition to this, similarly Ether’s price significantly decreased by 19.91% from $2,695 to $2,111 within the same period. It has now showing some recovery by risen in price to $2,331
According to CoinGlass data, 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.
In addition, anxiety 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.
Market observers the cause of this price volatility is other economic aspects such as 12.7% drop in the japanese stock market, Nikkei 225, After the central bank decided to increase the interest rates, It can be seen the loss in Japanese stocks market.
This can be oberserved that , the recent declined in Bitcoin is the biggest 72-hour loss as it erased between $200 to $500 billion of the total crypto market capitalization for a year.
All investors and analysts are paying close attention to the market, As the markets fluctuate and how it may affect the global market.
Factors Contributing to Bitcoin price Decline
- Technical Factors :- A significant drop in Bitcoin price might be part of a broader market correction after a period of rapid price increase. Traders often use technical analysis to predict such movements, which can lead to further selling if the market recognize the drop as an opportunity to exit or short the asset.
- Global Market Volatility
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- Stock Market Fluctuations: As investors shift their portfolios, traditional financial markets struggles due to this cryptocurrencies can also be impacted.
- Economic Uncertainty: Some major factors are there, such as rising inflation rates, economic slowdowns in major economies, or gepolitical tensions, have led to increased market volatility. Investors react to this by pulling out volatile assets like cryptocurreccies that leads to drop in Bitcoin’s price.
