Bitcoin sinks to $115,000 after hitting its newest record, as macro concerns spark liquidation wave
To start the week, the cryptocurrency market experienced a significant decline due to heightened macroeconomic concerns, leading to over $500 million in forced selling of long positions. Bitcoin, which had reached a new all-time high of $124,496 last week, dropped by 2% to $115,255.70. Meanwhile, Ether fell by 4% to $4,283.15 after nearing its record of around $4,800. The dip in prices was attributed to higher-than-expected July wholesale inflation data, raising doubts about a potential Federal Reserve rate cut in September.
Investors engaged in profit-taking, resulting in a wave of liquidations across the crypto market. Over the past 24 hours, sales from 133,643 traders totaled $576.35 million, with significant liquidations in both bitcoin and ether long positions. As a consequence, prices were pushed lower as traders were compelled to sell their assets at market value to settle their debts.
Furthermore, Treasury Secretary Scott Bessent’s recent comments added to investor disappointment. He clarified that the strategic bitcoin reserve established by President Donald Trump would only include bitcoin forfeited to the federal government, exploring ways to acquire more bitcoin through “budget-neutral pathways.”
The broader crypto market, as indicated by the CoinDesk 20 index, was down by 3.7%, and crypto-related stocks faced pressure. Bitmine Immersion was down by 8%, while newly listed crypto exchange Bullish saw a 7% decrease. Circle and Coinbase each experienced a 2% decline.
Investors are currently monitoring the Fed’s annual economic symposium in Jackson Hole, Wyoming, for insights into the central bank’s upcoming policy meetings. Traders are also awaiting Thursday’s jobless claims data for potential market impact.
Despite the recent highs in bitcoin and ether, traders were surprised by the lack of an August pullback in cryptocurrencies. Many expected macro concerns to overshadow the momentum surrounding crypto’s institutional and corporate adoption. However, pullbacks this month are viewed as healthy corrections rather than crisis reactions, supported by inflows into crypto ETFs and companies accumulating bitcoin and ether aggressively.
Overall, the crypto market remains dynamic, with various factors influencing price movements. Stay tuned for further developments and insights in the cryptocurrency space.
