Bitcoin down 10% since end of July 29, DOW also slips
crypto.news 01 August 2024 20:40, UTC 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.
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.
BREAKING: The Dow Jones Industrial Average just fell 500+ points in 45 minutes.
This came after the ISM Manufacturing Index fell to 46.8, its lowest level since August 2023.
Markets are worried that the US is heading into a recession. pic.twitter.com/OAIyS1hrks
— The Kobeissi Letter (@KobeissiLetter) August 1, 2024
Ether, Bitcoin lead crypto liquidations
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.
