Bitcoin showcased its correlation to traditional markets on Aug. 1 as the cryptocurrency slumped alongside stocks and market indexes.
Bitcoin (BTC) has 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 from The Kobeissi Letter.
Volatility in traditional markets and BTC prices also impacted the broader cryptocurrency ecosystem. CoinGecko 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 (ETH), Solana (SOL), and Ripple (XRP) enter a downtrend as capital fled the digital asset industry at press time.
Ether, Bitcoin lead crypto liquidations
Per CoinGlass, margin positions were unspared by market volatility. 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. SOL, XRP, and Dogecoin (DOGE) were the three most liquidated assets after Bitcoin and Ether.
