Why did the world's largest cryptocurrency, Bitcoin (BTC), and the general cryptocurrency market show a sudden decline today?

The world's largest cryptocurrency, Bitcoin (BTC), lost about 4.5% in value in the last 24 hours and fell to $ 52,700 at its lowest point.

The total market value of BTC reached the critical level of $ 1 trillion with the declines.

Similar declines were observed on the altcoin side as in BTC. However, a large amount of cryptocurrencies were also liquidated due to the increasing volatility in the market. The data shows the liquidation of $ 267 million worth of cryptocurrencies in the last 24 hours. $ 221 million of these were in long positions. A total of 85,109 traders were liquidated.

As can be expected, a significant portion of the liquidations were observed in Bitcoin with $ 99 million. Ethereum came in second with $ 59.75 million.

The decline is attributed to rising recession concerns following today’s employment data and Fed member Waller’s statements. Traders have been avoiding risk assets following these developments.

The S&P 500 fell 1.7% and the Nasdaq 100 fell 2.7%, while new data showed that U.S. employment growth in August fell 23,000 jobs below expectations. Two-year Treasury yields fell as much as 15 basis points before recouping some of their losses.

“Markets are turning their attention to how much the Fed will ease and how quickly the economy slows,” said Scott Wren of Wells Fargo Investment Institute. “Expect near-term volatility.”