A sudden crypto dip that has occurred over a span of two days has led to speculations regarding the likely reasons for the same, including Bitcoin’s decline.
Bitcoin, along with several other tokens, experienced a sharp fall since the later hours of August 4. The former was trading above $60,000 until then, but the current crypto dip has led to it falling below the mark. Bitcoin’s decline was also followed by a fall in other token prices in the crypto market. Meanwhile, BTC hit bottom at $52,000 during the dip and has since seen a minor recovery. This might be a signal for traders to start accumulating crypto.
This is the first time since February 2024 that Bitcoin has gone below $53,000. Following the approval of the spot Bitcoin ETFs in the US, BTC has broadly traded with bullish sentiments. During the current market dip, leveraged longs worth over $600 million were liquidated. A similar trend emerged in ETH as well, which is trading just above $2,300 at present.
If one analyzes this dip, it becomes clear that the stock market crash across the world might have had a spillover effect on the crypto market. Major economies like Japan and the US have been the main markets that have seen a fall in their equity markets. As a result, investor sentiments could be a factor for the fall in crypto prices as well.
BTC/USD 1D price chart
Bitcoin is currently trading at around $54,300 on August 5, 2024, with BTC/USD trading lower by a margin of around 10% in the last 24 hours. Bitcoin’s market cap was trading at around $1 trillion in the last 24 hours.
BTC/USD is trading lower than its 20-day EMA (around 63,300), as BTC’s 24-hour volume was at approximately $51 billion. The global crypto market cap decreased by around 12%, trading above $1.8 trillion. BTC’s year-to-date returns are above 29%.
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