Bitcoin’s link to standard markets was clear on August 1, when both the cryptocurrency index and the stock index went down a lot.
Bitcoin has lost more than 10% since July 29. It went from being worth close to $70,000 to being worth less than $63,500. This drop happened after Donald Trump’s speech in Nashville, which briefly sent the coin to its highest level in two months.
Bitcoin’s value dropped by 7% in just 24 hours, at the same time that the S&P 500 and Dow Jones Industrial Average also dropped significantly. In less than an hour, the Dow fell more than 500 points.
Bitcoin And Stocks Decline
On August 1, significant stocks like Amazon and Nvidia also went down because more people were afraid of a U.S. recession, according to experts from The Kobeissi Letter.The market for cryptocurrencies as a whole was affected by the instability.
According to CoinGecko, the overall value of the crypto market fell 6% to $2.3 trillion after briefly going up earlier in the week.As investors pulled their money out of the digital asset market, popular cryptocurrencies like Ethereum, Solana, and Ripple also went down.
CoinGlass says that the unstable market had a significant impact on margin holdings. Over 105,480 traders were forced to close their accounts, which cost $324 million in losses from risky positions.
Longs of ether topped the liquidations with $72 million, which shows that traders who were betting that the price of ETH would go up had to pay margin calls. Bitcoin came in second with $69 million in long liquidations. Next on the list of assets that were sold off were Solana, XRP, and Dogecoin.
