Bitcoin Plunges to Lowest Levels in Six Months as Crypto Market Faces Liquidations
Cryptocurrency prices took a sharp dive early Monday, with bitcoin hitting its lowest price point since mid-February. Ethereum also saw a decline, dropping to levels last seen in January, coinciding with approximately $1.19 billion in crypto futures being liquidated within the past 24 hours as of Monday morning.
In recent developments, Coinbase surpassed Q2 revenue estimates late last week, benefiting from increased trading volume and transaction revenue. Additionally, spot ethereum ETFs commenced trading on July 23 following approval from the SEC. The crypto market experienced an upturn at the start of the month after former President Trump nominated Senator J.D. Vance (R-Ohio), known for his crypto-friendly stance, as his potential vice-presidential running mate.
Bitcoin was trading around $52,150 on Monday morning, showing a slight recovery from its overnight low of $49,314, marking its lowest level since mid-February. The cryptocurrency reached a new all-time high of $73,798 on March 14, surpassing its previous record set in November 2021. Despite a 157% rebound in 2023, bitcoin is currently up by approximately 24% year-to-date following the August 5 selloff.
Ethereum was trading near $2,345 early Monday, bouncing back from its initial low of $2,128. The cryptocurrency hit a 52-week high of $4,092 on March 12, crossing the $4,000 threshold for the first time in 26 months. Despite this, Ethereum remains below its peak above $4,800 in November 2021 and has only seen a 2.5% increase in 2024 after the early August selloff.
Investing in digital assets comes with high volatility, and investors should focus on key objectives such as knowing when to sell to protect their investments, cutting losses, and capturing profits. Additionally, being prepared to profit from potential rebounds is crucial. While cryptocurrencies were initially seen as a hedge against inflation, they have followed broader market trends instead.
For more insights into the world of digital asset investments, readers can explore IBD’s Best Cryptocurrencies And Crypto Stocks To Buy And Watch page. Those interested in delving deeper into the realm of crypto can refer to the What Is Cryptocurrency? explainer page.
In related news, various articles from Dow Jones cover topics such as Bitcoin’s upcoming halving, the European Central Bank’s criticism of Bitcoin, and the comparison of Bitcoin to digital gold. These resources offer valuable market insights for those interested in staying informed about cryptocurrency developments.
