Bitcoin rose sharply as new US economic data fueled expectations of a Federal Reserve turnabout. However, the price of the number one cryptocurrency has since fallen to levels not seen this month.
The market capitalization of all cryptocurrencies has fallen below $1 trillion in a tricky choppy market price action as other cryptocurrencies follow in Bitcoin’s footsteps.
The price of bitcoin jumped on Friday afternoon, reaching $21,886 on Bitstamp according to TradingView, a gain of 3% in just 2 hours, before plummeting to its lowest price point this month in the following hours.
The move looked to have marked a surprise about-turn for Bitcoin before it continued the selling pressure trend it had been on as markets awaited clues from Fed Chair Jerome Powell’s Jackson Hole symposium speech.
The rest of the cryptocurrency market, which followed the flagship cryptocurrency, is drowning in a sea of red. The market capitalization of all cryptocurrencies worldwide has lost $60 billion since its intraday peak as it dips below $1 trillion for the first time in a month.
The bumpy market price action has resulted in a sizable amount of liquidation due to traders’ failure to profit from their wagers on the price trajectory of Bitcoin and other cryptocurrencies. Short order liquidations make up 73.33% of all liquidations, according to data from Coinglass.
84,409 traders from across the cryptosphere liquidated their long orders in the last day, bringing the total amount liquidated to about $268 million.
There are indications that further volatility is coming. Manage your portfolio carefully as the lack of a BTC futures premium, a series of liquidations over the past week, and excessive stablecoin lending all hint toward potential new yearly lows.