The price of Bitcoin (BTC), the largest cryptocurrency by market capitalization, is experiencing high volatility amid uncertain global macroeconomic conditions.
Bitcoin’s price first saw a sharp decline, dropping from $64,000 to a low of $62,480 on the evening of Thursday (August 1, 2024). This decline resulted in significant losses for traders betting on Bitcoin’s recovery, with a total of $337 million (approximately IDR 5.4 trillion) being liquidated.
The majority of liquidations were long positions amounting to $310.27 million (approximately IDR 5.04 trillion), according to CoinGlass data. A few hours later, Bitcoin gradually recovered, rising to $64,500.
On Friday morning (August 2, 2024), the cryptocurrency even reached $65,450 before experiencing a brief decline and then recovering to $64,370 as of the time this article was written.
According to the latest data from CoinGlass, the total liquidations in the crypto market currently amount to $284.8 million (approximately IDR 4.6 trillion), with long positions accounting for $221.8 million (approximately IDR 3.8 trillion). A total of 101,009 traders were liquidated in the last 24 hours.
Influenced by U.S. Interest Rates and Middle East Conflict
Bitcoin’s price fell more than 3%, from $66,500 to $64,000, shortly after the U.S. Federal Reserve decided to maintain U.S. interest rates in the range of 5.25%-5.50% on July 31, 2024.
Market turmoil increased following a report from The New York Times about escalating conflict in the Middle East, as the Iranian leader ordered a retaliatory strike against Israel over the killing of Hamas leader Ismail Haniyeh. This heightened the risk of a broader conflict in the region.
Bitcoin’s price has a history of reacting to geopolitical tensions in this area. On April 19, 2024, Israel launched a missile attack on Iran, causing Bitcoin’s price to drop 5.44% to $59,698 within just two hours, breaking a significant support level at $60,000
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