Bitcoin showcased its correlation to traditional markets on Aug. 1 as the cryptocurrency slumped alongside stocks and market indexes. Bitcoin declined over 10% since July 29, when the cryptocurrency surged toward $70,000 and reached a two-month high after Donald Trump’s remarks in Nashville. As of this writing, the asset was trading under $63,500.

BTC’s 7% slump in 24 hours coincided with significant drops in the S&P 500 and Dow Jones market indexes. Specifically, the Dow Jones Industrial Average fell over 500 points in under an hour. Several large-cap stocks, such as Amazon and Nvidia, also slipped on Aug. 1 amid market fears of a U.S. recession, according to analysts.

Volatility in traditional markets and BTC prices also impacted the broader cryptocurrency ecosystem. Data showed that the total crypto market cap shed 6%, dropping to $2.3 trillion after a rebound earlier in the week.

Price swings saw leaders like Ethereum, Solana, and Ripple enter a downtrend as capital fled the digital asset industry at press time.

BREAKING: The Dow Jones Industrial Average just fell 500+ points in 45 minutes. This came after the ISM Manufacturing Index fell to 46.8, its lowest level since August 2023. Markets are worried that the US is heading into a recession.

Market fears led to significant liquidations in margin positions. Over 105,480 traders were liquidated, and the downturn wiped out $324 million in leveraged positions.

Ether longs led crypto liquidations with $72 million, meaning that traders betting on higher ETH prices received margin calls. In close second, BTC posted $69 million in long liquidations. Solana, Ripple, and Dogecoin were the three most liquidated assets after Bitcoin and Ether.

Stay updated with the latest cryptocurrency news and analysis on Global Crypto News.

Post Views: 4