Bitcoin Plummets Below $56,000 Following Stock Market Decline

Cryptonews John Brightwater September 4, 2024

Bitcoin Plummets Below $56,000 Following Stock Market Decline

On the evening of Tuesday, September 3, 2024, the price of Bitcoin experienced a significant decline, reaching as low as $55,746, as reported by CoinGecko. This abrupt downturn correlated with the opening of Asian stock markets, following a notably poor performance in the U.S. financial markets. The decline in equities was largely attributed to the substantial losses incurred by technology company Nvidia, which contributed to an overall downturn in the Dow Jones Industrial Average by over 600 points. In Asia, the Nikkei stock index commenced trading down by 1,000 points from its previous close.

As of this report, Bitcoin had slightly recovered to $56,463, marking a decrease of nearly 3% on the day. Pav Hundal, the lead market analyst at the cryptocurrency exchange Swyftx, commented, “We have witnessed outflows totaling $767 million over the past five trading sessions. Should the U.S. payroll data reveal unexpected downturns, the situation may worsen before seeing any improvement.” The upcoming non-farm payroll report, which excludes agricultural workers, government employees, and private household data, is scheduled for release on Friday.

Additionally, Ethereum also mirrored Bitcoin’s decline, falling over 4% to a low of $2,318, although it was trading slightly higher at $2,339, thereby erasing the modest gains achieved since August 7.

The falling market conditions experienced in Asia have paralleled a similar decline encountered the previous Tuesday, which resulted in a swift liquidation of $95 million in long positions, evidencing investor sentiment betting on upward price movements. According to CoinGlass, this was complemented by an additional liquidation of over $169 million in long positions within the past 24 hours.

The cryptocurrency market reflected a broadly negative trend, with notable declines in other cryptocurrencies. Solana (SOL) fell by 6.4% to $125, whereas XRP decreased by 3.1% to $0.55, and Dogecoin (DOGE) witnessed a reduction of 5% to $0.094. In particular, Toncoin (TON), which is associated with the messaging platform Telegram, experienced a more severe drop, falling out of the top 10 cryptocurrencies by market capitalization. This decline was attributed to the recent incarceration of Telegram’s founder, Pavel Durov, in France, as well as network outages. Consequently, Toncoin’s price dropped over 8%, trading at $4.78.