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<a href="https://bitcoinworld.co.in/this-is-why-bitcoin-btc-could-drop-to-40k-cryptoquant/" title="This Is Why Bitcoin (BTC) Could Drop to $40K: CryptoQuant" rel="noopener noreferrer nofollow"></a>
<ul>
 <li style="font-weight: 400">CryptoQuant’s latest analysis indicates that Bitcoin could potentially drop to $40K, signaling a challenging period for investors.</li>
</ul>
Over $1 billion in crypto-tracked futures were liquidated in the past 24 hours.
Bitcoin tumbled more than 15% on Monday, briefly dipping below $50,000 amidst concerns of a US recession and growing geopolitical tensions in the Middle East.&nbsp;
This was the first time since February that BTC fell below this threshold before rebounding to around $52,000.
Experts suggest that the crypto asset could see more downsides.
<h3 id="span-style-font-weight-400-more-pain-for-bitcoin-span">More Pain for Bitcoin?</h3>
CryptoQuant’s latest analysis <a href="https://x.com/cryptoquant_com/status/1820359383085109514" rel="noopener noreferrer nofollow">indicates</a> that Bitcoin could potentially drop to $40,000, signaling a challenging period for investors.&nbsp;
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">
 <a href="https://twitter.com/hashtag/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">#Bitcoin</a> dropped over 16% in the last 24 hours, breaking below the $57K support level.
 This breach suggests a possible drop to $40K.
 Currently, traders are facing their most negative unrealized profit margins since November 2022. <a href="https://t.co/gTWT52NO60" rel="noopener noreferrer nofollow">pic.twitter.com/gTWT52NO60</a>
 — CryptoQuant.com (@cryptoquant_com) <a href="https://twitter.com/cryptoquant_com/status/1820359383085109514?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">August 5, 2024</a>
</blockquote>
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The crypto analytic platform highlighted that traders are currently experiencing their most negative unrealized profit margins since November 2022.
This downturn reflects a significant shift in market sentiment, with increased selling pressure as traders seek to mitigate losses amidst an uncertain economic backdrop.
As a result of Bitcoin’s massive fall, the percentage of holders in profit dropped to 75%, as per IntoTheBlock’s <a href="https://x.com/intotheblock/status/1820363986946113770" rel="noopener noreferrer nofollow">observation</a>.&nbsp;
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">
 As Bitcoin's price fell to $50k, the percentage of holders in profit dropped to 75%.
 This level was last seen in January when prices formed a local bottom around $39k. <a href="https://t.co/CAR5ju5VOR" rel="noopener noreferrer nofollow">pic.twitter.com/CAR5ju5VOR</a>
 — IntoTheBlock (@intotheblock) <a href="https://twitter.com/intotheblock/status/1820363986946113770?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">August 5, 2024</a>
</blockquote>
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This is a significant decline and the lowest level seen since January, when Bitcoin’s price formed a local bottom around $39,000.
Bitcoin wasn’t the only asset affected by intense selling pressure. Ethereum was down by more than 22% over the past 24 hours, which dragged its price down to $2,264 at the time of writing.
During the same period, Solana and XRP were also down by over 18.2% and 16.6%, along with the rest of the market. Meanwhile, Dogecoin declined by over 20%.
<h3 id="span-style-font-weight-400-over-1-billion-liquidated-span">Over $1 Billion Liquidated</h3>
The bloodbath triggered the liquidation of $1.08 billion in crypto-tracked futures over the past 24 hours. According to the data compiled by CoinGlass, $919.62 million long positions were liquidated, while short trades accounted for $162.45 million.
Bitcoin was hit hardest, seeing over $371 million in liquidations, with longs accounting for $310.26 million and shorts for $61.22 million.&nbsp;
Ethereum followed suit, with nearly $353 million liquidated during the same timeframe, including $303 million from longs and $49.6 million from shorts. Next up were Solana and Dogecoin, which also experienced notable liquidations, with $60.91 million and $13.14 million, respectively.
In the process, 283,280 traders were liquidated in the last 24 hours while the largest single liquidation order happened on Huobi for BTC-USD valued at $27 million.
The decline subsequently caused the crypto fear and greed sentiment index to indicate “fear,” reaching its lowest point since early July.

This Is Why Bitcoin (BTC) Could Drop to $40K: CryptoQuant

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