The entire network has sold over 800 million magnesium! Bitcoin once fell to 52,000
Since the weekend, Bitcoin has continued to weaken. It once fell to a low of $52,300 this morning (5th) and is currently quoted at $54,329. The rest of the altcoins collectively fell sharply, with Ethereum ($ETH) falling 21% on the day, Solana ($SOL) and Binance Coin ($BNB) also falling by more than 10% each.
As the market plummeted, the cryptocurrency leveraged contract market also ushered in a bloodbath. CoinGlass data shows that in the past 24 hours, the total amount of liquidated positions in the cryptocurrency market has exceeded US$800 million, with 208,000 people liquidated, and US$700 million in long orders (buy orders) alone.
Image source: CoinGlass
Why has Bitcoin plummeted in recent days?
Bitcoin returned to above $70,000 on July 29. Why has it continued to pull back sharply in the past few days? Based on foreign media reports, the market generally blames the following factors:
Macro environment
Bank of Japan raises interest rates, Japanese stocks begin to correct sharply
U.S. Treasury 10-year yield fell 60 basis points over the week
U.S. ISM manufacturing index falls to 8-month low in July
U.S. unemployment rate rises to 4.3%, a 3-year high
Major U.S. stock indexes also retreated sharply amid concerns about economic recession
Source: X
The Kobeissi Letter reviews today’s market and macro data
Political Factors
The U.S. Democratic Party may nominate Harris to participate in the 2024 presidential election. Trump, who is friendly to the encryption industry, has a lower chance of winning.
The leader of Hamas was assassinated, and geopolitical risks in the Middle East increased.
market factors
Jump Trading, a well-known cryptocurrency market maker, has recently continued to transfer large amounts of Ethereum to exchanges, causing market concerns about the risk of selling.
10x Research: Bitcoin may fall below $50,000
Regarding the future performance of Bitcoin, Markus Thielen, founder and analyst of 10x Research, gave a more pessimistic prediction as early as August 2. He said that although there have been positive signals in the cryptocurrency market recently, such as the inflow of Bitcoin spot ETF funds and the success of withstanding the selling pressure of the German government, and the US Federal Reserve has also adopted a dovish tone, suggesting that it may cut interest rates in the autumn, but This may be too late to prevent a recession.
Thielen said that if the U.S. hits a recession in 2025, Bitcoin could suffer a severe sell-off, echoing what happened before the 2001 and 2007 recessions, and the price could return to $50,000. level, or even lower.
Source: 10x Research
If a recession occurs, Bitcoin could fall below $50,000
[Disclaimer] There are risks in the market, so investment needs to be cautious. This article does not constitute investment advice. The analysts’ views are for reference only. Users should consider whether any opinions, views or conclusions in this article are consistent with their specific circumstances. Invest accordingly and do so at your own risk.
