Cryptocurrency Prices Drop as Bitcoin and Ethereum Experience Decline in Market Amid Volatility

Bitcoin, Ethereum, and the top 10 cryptocurrencies by market capitalization are experiencing a lackluster performance on Thursday morning.

As of the latest data, the price of Bitcoin remains below $65,000, showing a 2.2% decrease compared to the previous day. Similarly, Ethereum is down by 3.7% at $3,185.22. This drop mirrors the decline seen in Lido Staked Ethereum (stETH), a token associated with Ethereum.

The recent downtrend has triggered the liquidation of $225 million worth of derivatives contracts, with approximately $100 million liquidated in the last 12 hours alone, according to data from Coinglass.

When a trader faces liquidation, it means their market position has been forcibly closed due to a margin call or insufficient collateral. Margin plays a crucial role in leveraged positions, enabling traders to control a multiple of their deposit.

Bitcoin has seen three consecutive days of losses, prompting BRN analyst Valentin Fournier to suggest a potential further decline for the cryptocurrency. Fournier highlighted the bearish resistance in Bitcoin trading and the possibility of BTC dropping to the $62,500 or even $58,000 levels.

Despite Federal Reserve Chair Jerome Powell’s dovish comments on interest rates, indicating a potential rate cut in September, the crypto market has not responded positively. Crypto trading firm QCP Capital noted that the rally in equities, with the S&P 500 starting the day 1.6% higher than its previous close, has not translated to gains in the crypto market.

Among other top coins, Solana (SOL) has dropped by 7.2% to $169.13, while meme coins like Dogwifhat (WIF) and BONK have seen declines of 12% and 9%, respectively. Dogecoin (DOGE), the only meme coin in the Coingecko top 10, is down nearly 4% at $0.1205.

XRP has fallen to $0.608, a 7% decrease from the previous day. Binance’s BNB Coin (BNB) is trading at $571, down by 2.4%, and Toncoin (TON) has experienced a marginal 0.4% decline.

Stablecoins like USDC and Tether (USDT) have remained stable, maintaining their 1:1 peg with the U.S. dollar amidst the market turbulence.