Bitcoin Drops 4% as $156.4 Million in Cash Leaves the Market

Bitcoin, the world’s largest digital currency by market cap, has dropped 4% in the past 24 hours as $155.25 million in cash has left the digital currency market.

After holding the level above $60,000 for four days, the price of Bitcoin fell below this threshold on August 21, falling below $59,000. After reaching a high of $61,562, the digital currency fell to an intraday low of $58,269.

Data from CoinGecko shows that the total crypto market cap has dropped 4.32% to $2.05 trillion in the past 24 hours. Despite a 52% increase in global cryptocurrency trading volume from the previous day, trading activity was down from the previous week. The latest decline saw Bitcoin’s weekly loss against the US dollar reach 9.7%.

The price of Ethereum (ETH) also fell to $2,527 after hitting a high of $2,711 earlier in the day and is trading at $2,553 at the time of writing.

Among the top 10 cryptocurrencies by market cap, Tooncoin was the biggest loser at 8.43%, followed by Solana at 8.12% and Dogecoin at around 6.75%. Markets fluctuated under heavy selling pressure on August 21.

It was a tough day for traders in crypto derivatives markets as a significant number of long positions were liquidated. Coinglass data shows that total cryptocurrency liquidity reached $155.25 million in the past 24 hours. Of this, about 80%, or $124 million, was in long positions, indicating that traders are expecting further price gains.

Over 61,637 traders were liquidated in the past 24 hours. The largest liquidation was on the OKX exchange for $2.17 million. Bitcoin led the way with a settlement volume of $41.31 million, followed by Ethereum with a settlement volume of $39.53 million.

According to Coinglass, Binance topped the list with $7.04 million in cash: $2.42 million in long positions and $4.62 million in short positions. OKX was next with $3.48 million in cash: $1.30 million long and $2.18 million short.

As a result, the total amount of market interest fell by 3.12% and now stands at around $27.5 billion.

Despite the recent volatility in the cryptocurrency market, analysts at Grayscale Research expect prices to rise in the coming months. They believe that the value of the tokens can recover if the US economy manages to make a “soft landing” and avoid a recession, and that Bitcoin is likely to hit an all-time high later this year.