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Bitcoin and Ethereum Experience Sharp Drop, Leading to $800 Million in Liquidations

Date: August 18, 2023

According to Decrypt, The cryptocurrency market witnessed a significant downturn as both Bitcoin and Ethereum plummeted in value, triggering a massive wave of liquidations totaling over $800 million.

Bitcoin’s price took a hard hit on Thursday afternoon, plummeting by 7% within a mere 20 minutes and briefly dipping below the $26,000 mark. This sudden crash had a ripple effect throughout the entire cryptocurrency landscape, causing other major cryptocurrencies like Ethereum to follow suit.

Ethereum, the second-largest cryptocurrency by market capitalization, saw a nearly 10% decline over the past 24 hours, trading at $1,640 at the time of writing. Its value had dropped to as low as $1,576 during the same afternoon.

The widespread market decline was exacerbated by a series of liquidations, with overleveraged positions getting forcefully closed. Coinglass data indicates that the hour following the initial price drop saw a staggering $801 million worth of liquidations.

Bitcoin’s downturn was accompanied by news of China’s Evergrande Group, a major property developer, filing for Chapter 15 bankruptcy protection in New York. Additionally, reports surfaced about Elon Musk’s SpaceX recording a write-down of $373 million on its Bitcoin holdings and conducting an undisclosed amount of selling.

It’s worth noting that this plunge marks Bitcoin’s lowest price point since the beginning of June. While investor interest in a Bitcoin exchange-traded fund (ETF) remains high, the U.S. Securities and Exchange Commission (SEC) has been slow to approve such investment vehicles. This regulatory hesitation may be contributing to market uncertainty.

As the cryptocurrency market faces heightened volatility and regulatory challenges, traders and enthusiasts continue to closely monitor price movements and developments across various digital assets.

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