Bitcoin Plummets 7% to Break $115,000
The Bitcoin market is experiencing a severe adjustment. On August 19, the price of Bitcoin plummeted by 7%, falling below the $115,000 mark, reaching a new low in 11 days.
On August 19, Beijing time, the price of Bitcoin dropped significantly to $115,407, with a daily decline of 2.20%. This drop marks an 8% decrease from Bitcoin's recent high of $124,500.
The decline not only affected Bitcoin but also dealt a heavy blow to other major cryptocurrencies. Ethereum fell by 2.47% to $4,233, while XRP and Dogecoin (DOGE) saw declines approaching 9%.
Despite the overall market weakness, some individual tokens showed resilience. XRP rose against the trend by 0.18%, and BNB also saw a slight increase of 1.17%.
Reasons for the Plunge
Massive leveraged liquidations are one of the direct causes of the plunge. According to CoinGlass data, leveraged long positions lost over $860 million in just one day.
The entire cryptocurrency market liquidated over $500 million in funds within 24 hours. This large-scale liquidation triggered a chain reaction, forcing traders to sell assets to meet margin requirements.
Expectations of tightening U.S. fiscal policy have also put fundamental pressure on the market. Policymakers hinted at possible regulatory actions on the cryptocurrency derivatives market to address speculative trading.
Higher-than-expected U.S. inflation data also affected investor confidence, triggering a risk-averse sentiment in the market.
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