Bitcoin fell below $52,000 and Ethereum fell below $2,300

Overnight on August 5, the first cryptocurrency fell almost 13%. For a short time, the coin dropped to $49,000.

15-minute BTC/USDT chart of the Binance exchange. Data: TradingView.

At the time of writing, digital gold has recovered slightly and is trading at $52,700.

according to CoinGecko, its capitalization is about $1 trillion. The total crypto market fell to $1.88 trillion.

After Bitcoin, other digital assets from the top 10 entered the “red zone”. Ethereum fell by 22%, falling below $2,300.

Data: CoinGecko.

Solana sank below $120 (-39%), BNB is trading at $430 (-29%), and TON is around $5.1 (-25%).

according to Congressover the past 24 hours, the number of liquidations reached $1.05 billion Of this, $902 million were long positions.

Liquid map. Data from Coinglass.

What is happening to Bitcoin?

The main reason for the correction may be the continued fall in the US stock market since last week, caused by the rise in the Middle East.

CryptoQuant analysts drew attention to the loss of the resistance level of $57,000 and did not rule out another drop to $40,000.

#Bitcoin fell more than 16% in the last 24 hours, breaking below the $57K support level.

This break suggests a drop to $40K.

Currently, traders are facing their most negative unknown profit margins since November 2022. pic.twitter.com/gTWT52NO60

— CryptoQuant.com (@cryptoquant_com) August 5, 2024

“Traders are now facing the worst unknown gains since November 2022,” the experts said.

The founder of MN Trading, Michael van de Poppe, said that such days “usually mark a low or the beginning of a major crisis.” “

These days usually define a low level or the beginning of a major crisis.

It is binary.

Either V-Shape back up and it’s going to turn towards $BTC as a safe haven alongside Gold & $ETH taking over with DeFi as a safe haven for banking systems.

I think we are going into that.

– Michaël van de Poppe (@CryptoMichNL) August 5, 2024

“Either the V pattern will come back and turn to Bitcoin as a safe haven with gold and Ethereum taking over and DeFi becoming a safe haven for banking systems. I think we’re getting into this,” he wrote.

The network also talks about how the Jump Crypto market maker could be involved in the market dump. company 4 August without hindrance 120 000 wETH № Lido and he has sold most of them by now, which negatively affected the second largest cryptocurrency by capitalization.

My TradFi birdies are telling me that someone big is smoked, and he’s dumping everything #crypto. Don’t know if this is true, I won’t name names, but let the fam know if you are hearing the same thing?????

— Arthur Hayes (@CryptoHayes) August 5, 2024

“My TradFi– the birds tell me that someone got high and is draining all cryptocurrency. I don’t know if this is true. I won’t name names, but I will let the family know if you hear the same,” said former BitMEX CEO Arthur Hayes.

The president of Euro Pacific Capital, Peter Schiff, did not miss the opportunity to make fun of the market. According to him, many Bitcoin investors are “in denial. ”

Based on the comments in my posts, #Bitcoin #Keepers is in denial. You are whistling past him #crypto cemetery Don’t say I didn’t warn you.

— Peter Schiff (@PeterSchiff) August 4, 2024

“You guys are running past the crypto graveyard. Just don’t say I didn’t warn you,” he said.

The market still has a negative impact on how Mt.Gox assets could be sold. Although it is in Glassnode to consider, that most of those who receive money are guardians. This could ease the pressure in the coming weeks.

It could have a negative impact on the market weak dynamics Ethereum spot-ETF and changes in the US presidential race.

Let’s remember, in the Capital of QCP expectation more significant fluctuations in Ethereum prices – the monthly premium for asset volatility in “long-range” options increased from 4% to 8%.

Previously, BRN analyst Valentin Fournier saidthat the first cryptocurrency mining companies may have started a new phase of coin collection.

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