Solana

Bitcoin

when

Billion

<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>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
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>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
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

Table of Contents

ItsBitcoinWorld

Other articles published on Aug 5, 2024

ETH Faces Key Support at $3K: Will Demand Surge or Drop?

IOTA’s Role in the Future of Decentralized Networks: An Overview of Its Technology, Integrations,...

NEIRO Price Pumps 40% After Vitalik Buterin Dumps 17B Tokens

NASA develops AI to accelerate Mars sample analysis for upcoming missions

FBI Alerts Public Scammers Impersonating Crypto Exchange Staff for Fraudulent Gains

Ethereum Falls 23% in Market Crash: What’s Next for ETH?

Join our free newsletter for daily crypto updates!