Bitcoin plummeted over 11% during Asian trading hours, briefly falling below $53,000, marking a 13.1% weekly decline—its worst performance since the 2022 collapse of crypto exchange FTX. Coinglass data reveals $710 million in forced liquidations across cryptocurrency markets within 24 hours, with long positions accounting for $620 million and short positions $96.03 million, affecting 191,903 traders.
Ethereum, altcoins, and meme coins like Dogecoin faced parallel sell-offs, while Binance’s BNB and XRP dipped approximately 6%.
Bitcoin ETFs See Largest Outflows in 3 Months
U.S.-listed Bitcoin ETFs recorded their highest capital withdrawals since May by August 2, coinciding with Bitcoin’s price breaching its 200-day moving average. Tony Sycamore, market analyst at IG Australia, noted this technical pattern suggests potential further declines toward $54,000.
CoinDesk attributed the slump to geopolitical tensions in the Middle East and weakened risk-asset performance (e.g., tech stocks), with traders warning of a drop to $55,000. Bitcoin’s 11.4% 24-hour fall to $53,882 marked a 3-week low, while its 13.1% weekly loss mirrored post-FTX turmoil levels.
Market Context: Crypto Still Outperforms Traditional Assets
Despite the downturn, Bitcoin’s 2025 gains (hypothetical projection) remain above gold’s 19% and global equities’ 9%, per Cointelegraph. The crypto market shed $500 billion in 3 days—its largest contraction in over a year—linked to weak U.S. jobs data, slowing tech-sector growth, and fears over Jump Crypto’s alleged sell-offs.
FAQs
Q: Why did Bitcoin crash suddenly?
A: The drop stemmed from macroeconomic concerns (U.S. jobs data), tech-stock declines, and speculative trading liquidations, exacerbated by geopolitical risks.
Q: Are altcoins affected similarly?
A: Yes—Ethereum, BNB, and meme coins like Dogecoin mirrored Bitcoin’s sell-off due to market correlation.
Q: Is this a buying opportunity?
A: While some analysts view dips as entry points, volatility remains high. 👉 Learn strategic accumulation tips before decision-making.
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