Crypto Market Plunges Again, Bitcoin Drops Below $53,000, Bulls Suffer "Bloodbath"

Crypto Market Plunges Again, Bitcoin Drops Below $53,000, Bulls Suffer "Bloodbath"The cryptocurrency market experienced another dramatic upheaval on August 5th, with Bitcoin's price abruptly plummeting in the early hours, breaking below $53,000 and hitting a new low in recent months. As of this writing, Bitcoin is hovering around $54,000, down over 10% in the last 24 hours

Crypto Market Plunges Again, Bitcoin Drops Below $53,000, Bulls Suffer "Bloodbath"

The cryptocurrency market experienced another dramatic upheaval on August 5th, with Bitcoin's price abruptly plummeting in the early hours, breaking below $53,000 and hitting a new low in recent months. As of this writing, Bitcoin is hovering around $54,000, down over 10% in the last 24 hours.

This latest slump is not an isolated incident, as the entire crypto market exhibits a "total collapse" pattern. Ethereum (ETH) has dropped over 20% in the last 24 hours, breaking below $2,200, also setting a new low for recent months. As of this writing, ETH has rebounded slightly to around $2,300.

Furthermore, other major cryptocurrencies haven't escaped the downturn. SOL briefly fell below $120, currently hovering around $125, down over 12% in the last 24 hours. BNB has dipped below the $450 mark, currently trading around $450, down over 15% in the last 24 hours.

The once-hot "altcoin" market also experienced a "waterfall drop." Popular coins like PEPE, BOME, WLD, and AEVO have seen significant price declines in a short period, leaving only a fraction of their previous highs.

Coinglass data shows that over the past 24 hours, over 210,000 accounts have liquidated, with total losses reaching $820 million. Of this, $720 million came from long positions, and $100 million from short positions. The largest single liquidation occurred on Huobi-BTC, with a value of $27 million.

It's noteworthy that amid market declines, the price of Tether (USDT), a stablecoin, has risen again in the over-the-counter (OTC) market. Currently, the onshore CNY/USD spot rate is 7.1421, but OTC USDT is trading at around CNY 7.45.

The reasons behind this latest cryptocurrency market crash are still unclear. However, industry experts generally believe that factors such as the Federal Reserve's interest rate hike expectations, macroeconomic uncertainty, and tightening regulatory policies could all negatively impact market sentiment.

This plunge serves as a wake-up call for cryptocurrency investors, reminding them once again of the extreme volatility and high risks associated with the market. Investors should exercise caution, manage risks effectively, and avoid blindly following trends.