Bitcoin $BTC suffered a massive sell-off in the morning of August 3, and the price fell rapidly, breaking through the $63,000, $62,000 and $61,000 levels in succession, reaching a low of $60,517. Other mainstream cryptocurrencies such as Ethereum, Binance Coin and Dogecoin also fell, with 24-hour declines of 6.84%, more than 5% and 6.8% respectively. The total market value of the entire cryptocurrency market fell by nearly 4%, evaporating more than $88 billion (Bitsgap) (CoinMarketCap).

Factors leading to this decline include the selling of investors holding a large amount of Bitcoin, especially since Bitcoin hit $70,000, the change in the holding structure of these investors. In addition, approximately $2.34 billion in Bitcoin options and $577.2 million in Ethereum options will expire today, which also exacerbated market volatility. The expiration of Bitcoin options with a maximum pain point of $66,000 may lead to increased market volatility, while the maximum pain point of Ethereum is $3,300 (Blocklr).

Despite the downward pressure on the market, analysts pointed out that the market may be approaching a critical point of recovery.