After a relatively calm week, Bitcoin (BTC) has seen renewed volatility with sharp price fluctuations over the past few days.
According to data from CoinMarketCap on Friday morning (August 16, 2024), Bitcoin’s price has plummeted dramatically from around $59,400 to $57,500.
The largest cryptocurrency even dipped further, touching $56,630 before recovering slightly to $57,420. Over the past week, Bitcoin’s price has fallen by more than 6.7%.
This decline in Bitcoin’s price was accompanied by drops in other cryptocurrencies, such as Ether (ETH), which fell by 3% to around $2,570. Other major altcoins also faced pressure, including ADA (-4%), TON (-3%), AVAX (-4%), and NEAR (-4%).
Additionally, this spot market decline was paired with massive liquidations in the crypto derivatives market, where 56,107 traders were liquidated, totaling $211.18 million (equivalent to IDR 3.3 trillion), mostly in long positions, according to data from CoinGlass.
Unclear Reasons Behind Crypto Decline
Bitcoin has been experiencing significant declines since the second quarter of 2024, partly due to the German government’s decision to sell its entire Bitcoin holdings, amounting to 50,000 BTC seized from the illegal streaming platform Movie2k.
Another drop occurred in early August when the global economy faced pressure after the Bank of Japan decided to raise interest rates, weakening the yen carry trade. This triggered a global equity market downturn, which also dragged down all risk assets, including cryptocurrencies.
However, the current decline in Bitcoin’s price seems to lack a clear catalyst, especially since the U.S. equity markets are on the rise, as seen with the S&P 500 up 1.6% and the Nasdaq up 2.3%.
Despite this, Bitcoin still has the potential to rebound with several driving catalysts, such as the expected rate cut by the U.S. Federal Reserve in September, increased adoption of Bitcoin spot ETFs, and growing institutional interest in Bitcoin investment.
Recently, Bitcoin miner Marathon Digital successfully raised $300 million through a convertible bond offering and immediately used the funds to purchase more than 4,000 Bitcoin at around $59,000 per coin.
On the other hand, medical equipment manufacturer Semler Scientific announced in early August that it had made an additional purchase of 101 BTC, totaling $6 million.
Since announcing its strategic Bitcoin reserve adoption in May 2024, Semler Scientific has purchased 929 BTC worth $63 million.
Follow our Twitter : https://x.com/safubit
Read : Two Major U.S. Banks Unveil Bitcoin Spot ETF Investments (dinodapps.com)
