n 20th August, Bitcoin fell below $59,000 and within an hour, it was down by 3% wiping out all the gains made the previous day. This sharp decline occurred after the Bitcoin price reached a weekly high of $61.4K which triggered a lot of hope for investors.
High Liquidations Everywhere in Crypto Space
This rapid drop resulted in more than $50 million dollars in liquidations in less than an hour. According to Coinglass, Bitcoin traders were the most affected in this liquidation. Ethereum and Litecoin also suffered deep losses, particularly traders on the leading exchanges such as OKX and Binance. All together, the day recorded $135.32 million dollars in liquidations, involving approximately 46,000 traders.
The performance of other major cryptocurrencies
Ethereum and Solana reversed all the gains they had made the previous day, as well as Bitcoin. On the other hand, BNB, Dogecoin, and XRP were not as affected as the other tokens as they were able to recover most of the losses they suffered. On the other hand, Toncoin was down significantly, with a 2% decline, whereas TRON went against the negative trend, and registered good gains, one of the main reasons is the rise of meme coins occurring on TRON chain, something that took many crypto traders by surprise.
Navigating Market Volatility
Recent market fluctuations are a perfect example of how unpredictable cryptocurrencies are and how dangerous it is to use high leverage. Since Bitcoin and other cryptocurrencies are still under lots of uncertainty and selling pressure, traders should be very careful when using leverage.
