In the early Asian trading session on August 5, the global financial market was shrouded in a strong risk-averse atmosphere. The price of Bitcoin suffered a heavy blow, falling below the $50,000 mark, and the cumulative decline in three days was close to 31%. This rare decline was regarded by industry analysts as "a rare sight in seven to ten years", and the market had serious differences in its short-term recovery prospects.
As the price of Bitcoin plummeted, the cryptocurrency market experienced violent fluctuations in the following 24 hours, with the total market value evaporating by more than $500 billion. Panic spread in the market, resulting in a large number of leveraged trading positions being forced to close. According to Coinglass statistics, about $1.08 billion of leveraged positions in the derivatives market were liquidated, of which long positions accounted for as high as 74%, involving an amount of about $804 million, indicating that the market's bullish confidence was severely frustrated.
Particularly noteworthy is that Bitcoin itself also had more than $404 million of positions liquidated, of which 70% were long positions, with an amount of up to $283 million, further exacerbating the selling pressure in the market. This series of chain reactions not only hit cryptocurrency investors hard, but also caused market concerns about the stability of the overall financial market.
