Share this article
First Mover Americas: Bitcoin Crashes to $50K as 'Perfect Storm' Hits Crypto Market
The latest price moves in crypto markets in context for Aug 5, 2024.
Updated Aug 6, 2024, 2:23 p.m. Published Aug 5, 2024, 12:23 p.m.
Make us preferred on Google
This article originally appeared in First Mover, CoinDesk’s daily newsletter, putting the latest moves in crypto markets in context. Subscribe to get it in your inbox every day.
Latest Prices
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
Top Stories
Latest News: Bitcoin Jumps Above $56K, Solana Leads Recovery From Monday's Rout
Cryptos crashed as risk-off sentiment permeated global markets. Bitcoin tumbled below $60,000 during the weekend, then nosedived to $49,300 during Monday's Asian morning as investors fled risk assets. Bitcoin is down nearly 15% in the past 24 hours, recovering to near $52,000. Ether fell 22% to $2,100, recording its biggest one-day fall since 2021. The altcoin-heavy broad-market benchmark CoinDesk 20 Index (CD20) slid nearly 20%, with crypto majors solana and Near Protocol plummeting 20%-25%. "Feels like we have been hit by a perfect storm," QCP analysts said in a market update. What started the sentiment shift was Friday's U.S. economic and jobs data igniting recession fears, coupled with rising tensions in the Middle East. The Japanese yen spiked against the U.S. dollar, leading to an unwind of trades across asset classes, with Asian equity indexes suffering record routs on Monday: The Taiwanese index, for example, had its worst day in 57 years. QCP also pointed to crypto trading giant Jump selling off assets, exacerbating the decline.
Crypto-related company stocks slid with digital asset prices. Crypto exchange Coinbase (COIN) dropped more than 9% in U.S. pre-market trading, while MicroStrategy (MSTR), which has a policy of buying bitcoin and holds more than 1% of the total supply that will ever be issued, lost 13%. CoinShares, a crypto asset manager, fell 7.5% in Sweden. U.S.-listed miners Marathon Digital (MARA) and Iren (IREN) both lost almost 14%, Hut 8 (HUT) fell 12% and Riot Platforms (RIOT) lost 11%.
Derivatives traders suffered a massive leverage wipeout as prices crashed. Crypto-tracking futures recorded over $1 billion in liquidations in the past 24 hours, CoinGlass data shows. Ether futures recorded over $340 million in liquidated bets and bitcoin futures losses led at $420 million. Futures tracking Solana’s SOL, dogecoin , XRP and pepe took on $75 million in cumulative liquidations.
Chart of the Day
- The chart shows bitcoin's six-month skew, measuring the spread between prices on calls and puts.
- The positive value indicates that long-term bias remains bullish amid the price crash to $50,000.
- A call offers an asymmetric upside to the buyer and represents a bullish bet on the market.
- Source: Amberdata
- Omkar Godbole
Trending Posts
More For You
More For You
Strategy says it can survive even if bitcoin drops to $8,000 and will 'equitize' debt
Strategy says it can withstand a bitcoin price drop to $8,000 and still cover its roughly $6 billion in net debt.
What to know:
- Strategy, led by Michael Saylor, says it can withstand a bitcoin price drop to $8,000 and still cover its roughly $6 billion in debt with its 714,644-bitcoin treasury.
- The company plans to gradually convert its convertible debt into equity and avoid issuing more senior debt, a strategy critics warn could heavily dilute existing shareholders.
- Skeptics argue that a deep bitcoin downturn would leave Strategy sitting on tens of billions in paper losses, strain refinancing options, and forcing share issuance that they say effectively "dumps" risk onto retail investors.
Top Stories
