Bitcoin Has Worst Drop Since 2021
Bitcoin posted the biggest weekly fall since the FTX crisis as risk aversion in global markets drags down all the crypto prices.
Tweet on BTC’s recent fall
Bitcoin already posted the biggest weekly fall since the FTX crisis.#BTCNews #btcdump #cryptomarket pic.twitter.com/Cnpmu9AnRg
— The_Journalbiz (@the_journalbiz) August 5, 2024
Bloomberg chart on BTC
Cryptocurrencies reeled from a bout of risk aversion in global markets on Monday, at one point sending Bitcoin down more than 16% and saddling second-ranked Ether with the steepest fall since 2021.
Top token Bitcoin traded 8% lower at $54,653 as of 11:36 a.m. in New York, adding to a 13.1% drop last week that was the worst since the period when the FTX exchange imploded. Ether shed over a fifth of its value before paring some of the slide to change hands at $2,440.
Crypto-related stocks tumbled before paring losses. Coinbase Global Inc., the largest US exchange, fell more than 20% at one point, Bitcoin proxy MicroStrategy Inc. plunged almost 30% at its lowest level of the day, and miners Marathon Digital Holdings Inc.
The declines come as a global stock selloff intensifies, reflecting concerns about the economic outlook and questions over whether heavy investment into artificial intelligence will live up to the hype surrounding the technology. Geopolitical tension is rising in the Middle East, adding to investor skittishness.
Total liquidation in bets on crypto was about $1.2 billion in the past 24 hours, one of the largest since early March this year with $922 million and $183 million in bullish and short positions respectively, according to Coinglass.
Overall, Bitcoin and Ether investment products saw outflows of $400 million and $146 million, respectively, in the week ended Aug. 3, according to CoinShares Ltd. data.
