Crypto Market Plunges: Bitcoin Drops Below $60,000, Wiping Out $314 Million

Crypto Market Plunges: Bitcoin Drops Below $60,000, Wiping Out $314 MillionEarly morning on August 28th, the cryptocurrency market experienced a widespread decline. Bitcoin, the largest digital currency, dropped over 5%, breaking through the $60,000 mark and hitting a low of $58,000

Crypto Market Plunges: Bitcoin Drops Below $60,000, Wiping Out $314 Million

Early morning on August 28th, the cryptocurrency market experienced a widespread decline. Bitcoin, the largest digital currency, dropped over 5%, breaking through the $60,000 mark and hitting a low of $58,000. As of press time, Bitcoin is trading at $59,387, down 5.72%. Ethereum also plummeted, falling over 8% during the day, while Dogecoin dropped nearly 7%.

According to Coinglass data, within a 24-hour period, the entire cryptocurrency network witnessed 85,670 liquidations, wiping out $314 million (approximately 2.2 billion yuan).

Federal Reserve Chair Jerome Powell stated last Friday that the Fed is planning to cut its benchmark interest rate from its highest level in over two decades. This signal triggered a sell-off in major tokens. Institutional analysts believe that major tokens are digesting the signals from Powell last week.

Tony Sycamore, a market analyst at IG Australia Pty, stated that "the Fed is basically calling the shots" for many assets, making Bitcoin's break below its 200-day moving average "a bit worrying."

According to data compiled by Bloomberg, spot Ethereum ETFs launched in July have seen a net outflow of nearly $112 million for eight consecutive trading days as of yesterday, marking their longest period of net outflows to date. Ethereum has yet to reclaim the ground lost in early August when a unwinding of yen carry trades triggered a sharp drop in the crypto market and global stock markets.

Furthermore, some analysts have earlier warned that fear sentiment could be impacting the cryptocurrency market due to geopolitical tensions in the Middle East and subdued sentiment around risk assets like tech stocks.

According to a previous report by the Beijing Business Daily, multiple analysts interviewed by the reporter mentioned that changes in market expectations are a significant factor driving Bitcoin price fluctuations. On the one hand, the decline in global stock markets and heightened risk aversion are putting pressure on Bitcoin, and even interest rate cuts have failed to boost market confidence, further exacerbating market uncertainty. On the other hand, the movement of market funds has also had a significant impact on Bitcoin prices. As prices retreat and trigger a series of chain liquidations, it has resulted in rapid price declines.