Bitcoin and Ether suffer sharp declines, wiping out over $600 million in leveraged long positions amid a sudden crypto market nosedive.
The cryptocurrency market has experienced a significant downturn, with Bitcoin crashing to lows below $53,000 and Ether plummeting by 18% within hours. This flash crash has resulted in the liquidation of over $600 million in leveraged long positions across the market, marking one of the largest sell-offs in recent memory.
Key Points:
Bitcoin dropped sharply on August 5, falling from $58,350 to as low as $52,500 in less than two hours, before recovering slightly to $54,384.
Ether also saw a drastic decline, tumbling from $2,695 to $2,118 within the same timeframe, and rebounding to $2,358.
Over $740 million in leverage positions were wiped out in the last 24 hours, with ETH longs accounting for $256 million and BTC longs totaling $231 million.
The downturn coincided with a broader sell-off in the Japanese stock market, driven by weak economic data and concerns over interest rate hikes.
Market sentiment was further affected by mass selling from Jump Crypto and concerns over slowed growth in leading tech stocks.
The sudden and severe crypto market downturn underscores the volatility and susceptibility of digital assets to external economic factors and market sentiment shifts. Traders and investors are advised to exercise caution amidst heightened uncertainty, as the market grapples with significant price swings and liquidation events.
Source: Cointelegraph
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