This is the first time that the price of Bitcoin has dropped below $50,000 since February. It was as low as $49,351 and as high as nearly $51,000.
This decline aligns with a significant downturn in the stock and altcoin markets, as BTC’s market share rises to 58%. With approximately 17% of its market value lost, the cryptocurrency market has fallen dramatically.
According to CoinMarketCap, as of August 5, the market capitalisation has dropped from about $2.16 trillion to about $1.76 trillion.
The $600 million in leveraged long positions were liquidated as a result of the early August 5th fall in Bitcoin. This market turbulence also affected Ether (ETH), which experienced a sharp collapse and lost almost 20% of its value in a matter of two hours. According to the most recent data, ETH is currently trading at roughly $2,200 after reaching a low of $2,172 earlier in the day.
This market meltdown available to BrandSpur digital news platform, is a part of the biggest sell-off in over a year, with losses of nearly $500 billion since August 2. The decline has been attributed in part to the S&P 500’s decline, which has totalled more than 4% throughout that time.
The market’s decline has been attributed to rekindled recessionary fears, dismal jobless figures from the US, and sluggish growth among top tech stocks.
The Crypto Fear & Greed Index has now fallen to 26, indicating a state of “Fear” in the market, from its peak of 67 (“Greed”) on July 29.
