Bitcoin spirals below $55k for first time since July 13

The cryptocurrency market took a nosedive over the weekend, with Bitcoin quickly falling below $60,000 for the first time since July 13.

Observers told X.com that a number of factors contributed to the decline, including Israel preparing for possible attacks from both Iran and Hezbollah, and warning of attacks planned for Monday.

Bitcoin (BTC) lost 10% of its value over the weekend, according to CoinGecko, and remains just below $55,000. As of last check, Bitcoin was sitting at $54,348.20, down a dramatic 9.6%.

Bitcoin 24-hour price chart for August 3-4: Source: CoinGecko

According to CoinGlass, total liquidations in the last 24 hours have risen to a whopping $620 million, 90% of which were long positions.

It is safe to say that the cryptocurrency market had a tough weekend, with major assets like Ethereum (ETH) down more than 12.5% ​​at last check, leading to further liquidations.

But Bitcoin in particular has been on a roller coaster ride lately, with the world’s largest cryptocurrency by market cap experiencing a seven-day decline of almost 16%.

Bitcoin reacts to global politics

Another story that has been added to the weekend news cycle is the escalating tensions in the Middle East conflict between Israel and Hamas, which threatens to escalate into a larger conflict that could disrupt trade and send both domestic and international markets into a frenzy.

Additionally, former President and recent crypto convert Donald Trump’s journey to retake the White House took an unexpected turn when President Joe Biden decided to step aside and support Vice President Kamala Harris.

This political conspiracy has led Harris to attempt to repair ties with the crypto community and advance in the polls.