Originally published on: August 05, 2024
In a dramatic turn of events, Bitcoin has dipped below the $50,000 mark for the first time in months, hitting a low of $49,351 before showing signs of recovery towards $51,000.
As Bitcoin’s dominance reaches 58%, the entire cryptocurrency market has suffered a staggering 17% crash, wiping out billions in market capitalization. CoinMarketCap reported a drop from roughly $2.16 trillion to $1.76 trillion on August 5.
The start of the Bitcoin price decline on August 5 resulted in the liquidation of $600 million worth of leveraged long positions, contributing to the overall market crash. Ethereum also took a hit, plunging nearly 20% in just two hours.
Despite bouncing back from a low of $2,172, the price of Ether was hovering around $2,200 at the time of writing. The market’s sell-off, coupled with poor performance in equities, sparked fears of a looming recession.
Galaxy Research recently released a report raising concerns about the sustainability of Bitcoin layer-2 scaling networks in the long run. Analysts highlighted potential challenges, particularly in covering costs associated with transactions.
As the market plunges into “Fear” territory, investors are bracing for the unknown as the crypto landscape faces uncertainty. Stay informed with the latest updates on crypto laws and guidelines to make sound decisions for your investments. Subscribe to our newsletter for more insights.