Bitcoin dips below $50K as crypto market crashes
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Loading... - Angelina Casa
- 08 Aug 2024
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Bitcoin's price recently dropped below $50,000 for the first time since February, hitting a low of $49,351 before rebounding to around $51,000. This decline occurred as Bitcoin's dominance in the cryptocurrency market rose to 58%, coinciding with significant drops in both the altcoin and stock markets.
The overall cryptocurrency market has faced a substantial contraction, with more than 17% of its total market capitalization wiped out. According to CoinMarketCap, the market cap, which was approximately $2.16 trillion, has fallen to about $1.76 trillion as of August 5.
The early hours of August 5 saw Bitcoin's price drop trigger the liquidation of $600 million in leveraged long positions. This turmoil also affected Ether (ETH), which experienced a sharp decline, losing nearly 20% of its value within just two hours. ETH is currently trading around $2,200, recovering from a low of $2,172 earlier in the day.
This market crash is part of the most significant sell-off in nearly a year, with over $500 billion in losses recorded since August 2. The decline in the S&P 500, which fell over 4% during the same period, has contributed to this downturn.
The market's decline has been driven by renewed fears of a recession, disappointing U.S. employment data, and sluggish growth among major tech stocks. The Crypto Fear & Greed Index, which was at 67 ("Greed") on July 29, has now plunged to 26, indicating a state of "Fear" in the market.
