Bitcoin showed its correlation with traditional markets on August 1, as the cryptocurrency fell alongside stocks and market indices.
Bitcoin (BTC) has fallen more than 10% since July 29, when the cryptocurrency surged toward $70,000 and hit a two-month high after Donald Trump’s remarks in Nashville. As of this writing, the coin was trading below $63,500.
Bitcoin’s 7% drop in 24 hours coincided with significant declines in the S&P 500 and Dow Jones market indices. Specifically, the Dow Jones Industrial Average fell more than 500 points in less than an hour. Several large-cap stocks, such as Amazon and Nvidia, also fell on August 1 amid market fears of a U.S. recession, according to analysts at The Kobeissi Letter.
The volatility in traditional markets and Bitcoin prices also affected the broader cryptocurrency ecosystem. Data from CoinGecko showed that the total cryptocurrency market cap fell 6%, falling to $2.3 trillion after a rebound earlier in the week.
Price volatility has seen leading coins such as Ethereum (ETH), Solana (SOL), and Ripple (XRP) enter a bearish trend as capital flees the digital asset industry at the time of publishing.
Ether and Bitcoin Lead Cryptocurrency Liquidations
According to CoinGlass, the margin positions were unsaved Due to market volatility. More than 105,480 traders were liquidated, and the decline wiped out $324 million from financial positions.
Long liquidations on Ethereum led with $72 million in liquidations, meaning traders who bet on Ethereum’s price going up were hit with margin calls. Bitcoin came in second with $69 million in long liquidations. SOL, XRP, and Dogecoin (DOGE) were the three most liquidated assets after Bitcoin and Ethereum.
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