Bitcoin saw a significant dip on Tuesday, falling to a low of $61,455 after peaking at $65,103 just three days earlier. This downturn triggered extensive liquidations across the crypto market, with $20.28 million in Bitcoin long positions and $40.29 million in Ethereum longs being wiped out.
The global cryptocurrency market cap dropped by 1.83%, settling around $2.17 trillion. Bitcoin (BTC) slid from an intraday high of $63,547 to a low of $61,455 by 11 a.m. EDT. By 4 p.m., Bitcoin was trading just below $62,000, marking a 2% decline against the U.S. dollar over the past 24 hours. Ethereum (ETH) experienced a steeper drop, falling 3.7% to $2,583.
Among the top ten cryptocurrencies, Solana (SOL) declined by 1.97%, while XRP bucked the trend with a 2% gain. Dogecoin (DOGE) also dipped, losing 1% during the trading day. On the other hand, Helium (HNT) was the day’s top performer with an 8% rise, while Akash Network (AKT) recorded the biggest loss, dropping 5.85%.
The market downturn led to total liquidations in the crypto derivatives market amounting to approximately $120.47 million, mostly from long positions. By 4 p.m., about $99.12 million in long positions had been liquidated, including $60.57 million from ETH and BTC. One notable liquidation occurred on Okx, where a $2 million ETH trade was closed.
The crypto market continues to seek stability following a volatile August. Bitcoin and other cryptocurrencies had started to recover after U.S. Federal Reserve Chair Jerome Powell’s comments at the Jackson Hole Symposium, which hinted at potential rate cuts. Market participants are now focused on the upcoming Federal Open Market Committee (FOMC) meeting for further economic cues.
Historically, periods of low volatility in Bitcoin have often led to significant price movements. Crypto analyst CryptoCon pointed out that such phases have previously preceded market breakouts, suggesting that traders should remain cautiously optimistic about future price action.
With Bitcoin dipping below the $62,000 mark, the crypto market faces several challenges, including ongoing regulatory scrutiny and inflation concerns. Investors are keeping a close eye on upcoming economic reports that could sway market sentiment and impact prices in the coming weeks. The developments in the crypto space will be crucial in determining the future trajectory of Bitcoin and other digital assets during this uncertain period.
