Bitcoin down 10% since end of July 29, DOW also slips

Bitcoin fell along with stocks and market indices on August 1, revealing its correlation with traditional markets.

Bitcoin (BTC) has fallen more than 10% since July 29, when the cryptocurrency surged to $70,000 and hit a two-month peak following Donald Trump’s remarks in Nashville. As of the time of writing, the asset was trading below $63,500.

BTC 24-hour chart on August 1 | Source: crypto.news

BTC’s 7% drop in 24 hours coincided with significant declines in the S&P 500 and Dow Jones industrial indexes. Notably, the Dow Jones Industrial Average fell by more than 500 points in less than an hour. Several large-cap stocks, such as Amazon and Nvidia, also fell on August 1 amid market fears of a U.S. recession, according to analysts at The Kobeissi Letter.

Volatility in traditional markets and BTC prices has also affected the broader crypto ecosystem, with CoinGecko data showing that total crypto market cap fell 6% to $2.3 trillion after a recovery earlier in the week.

As of press time, price volatility in leaders like Ethereum (ETH), Solana (SOL), and Ripple (XRP) has caused them to enter a downtrend as capital flees the digital asset sector.

BREAKING NEWS: The Dow Jones Industrial Average fell more than 500 points in 45 minutes.

This development came after the ISM Manufacturing Index fell to 46.8, its lowest level since August 2023.

Markets fear the US is entering a recession. pic.twitter.com/OAIyS1hrks

— Kobeissi Letter (@KobeissiLetter) August 1, 2024

Ether and Bitcoin Lead Crypto Liquidations

According to CoinGlass, margin positions were unaffected by market volatility. More than 105,480 traders were liquidated, and the drop wiped out $324 million worth of leveraged positions.

Ether longs led the crypto liquidations with $72 million, meaning investors betting on higher ETH prices received margin calls. In second place, BTC recorded $69 million in long liquidations. SOL, XRP, and Dogecoin (DOGE) were the three most liquidated assets after Bitcoin and Ether.