Bitcoin turns into a bloodbath

Bitcoin bulls struggle to hold the $60K line, as traders' appetite for risk in the crypto market moderates considerably

Olumide Adesina•Saturday, August 3, 2024•2 min read

Bitcoin bulls struggle to hold the $60K line, as traders’ appetite for risk in the crypto market moderates considerably.

Bitcoin formed a huge red candle on the daily chart after losing about 6% on Friday.

The popular crypto asset is currently trading at $61.5K, as bull battle to retake the $62K mark following a low of $60.4K.

The bearish wave also hurt the altcoin market, which caused Ethereum to go below $3K, meme coins to plummet, and a wave of liquidations to sweep the market. This weekend has seen a massive collapse in the cryptocurrency market, wiping out about $300 million in leveraged trades on Friday.

A broadly bullish feeling was established by the recovery surge that preceded the FOMC meeting and the strong findings of the July CPI report. The feeling was further strengthened by the announcement that three significant US pension funds were interested in purchasing Bitcoin through the ETFs.

The FOMC meeting postponed the much-anticipated rate drop, with a decision possibly made in September. Following the FOMC meeting on August 2, enormous daily net flows began to turn pessimistic. All U.S. Spot Bitcoin ETFs had a negative $237.45 million net daily inflow. As a result, the huge withdrawals caused the cryptocurrency market to move catastrophically. Fidelity’s FBTC fund saw the biggest withdrawal. Grayscale’s GBTC at $45.95 million and Ark’s ARKB at $87.68 million were two more noteworthy outflows.

BlackRock’s IBIT fund on the NASDAQ saw the largest inflow with a net inflow of $42.81 million. Exchanges held 40% of the billions of Bitcoins that Mt. Gox paid to its creditors earlier this week. With minimal outside intervention, Bitcoin’s price stayed green, however, the sell-off wave that followed the distribution run and the $3 billion transfer to exchanges from the $9 billion outstanding prolonged selling pressure in the cryptocurrency space.

However, on Binance, the top traders in the BTC/USDT pair have a long-to-short ratio (Positions) of 1.8582. This ratio indicates that the top traders have almost 1.86 long holdings for every short position. Bitcoin and the cryptocurrency market will probably make a comeback soon.

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ABOUT THE AUTHOR See More

Olumide Adesina

Financial Market Writer

Olumide Adesina is a French-born Nigerian financial writer. He tracks the financial markets with over 15 years of working experience in investment trading.