Bitcoin Falls Below $50K Amid 17% Crypto Market Crash

Bitcoin (BTC) has dipped below $50,000 for the first time since February, reaching a low of $49,351 before recovering to around $51,000. This decline is part of a broader market downturn that has seen the total cryptocurrency market capitalization drop by 17%, falling to approximately $1.76 trillion from a previous $2.16 trillion.

Crypto Market Faces Significant Setback

The cryptocurrency market has been hit hard, with Bitcoin’s dominance rising to 58% amid a sharp decline in altcoins and the stock market. This widespread downturn has resulted in a substantial loss of market value, affecting various digital assets.

Source: CoinMarketCap

Leveraged Positions and Ether’s Sharp Decline

In the early hours of August 5, Bitcoin’s price drop triggered a massive liquidation of leveraged long positions, wiping out $600 million. 

Source: TradingView

Ether (ETH), the second-largest cryptocurrency by market value, also experienced a sharp decline, losing nearly 20% of its value within two hours. At the time of writing, ETH has recovered slightly to around $2,200 after hitting a low of $2,172.

Also Read: Crypto Ecosystem Lost $269M to Hackers in July, 87% Stolen in Single CeFi Hack