Bitcoin’s (BTC) weak rally attempt during US trading hours on Friday was ineffective, leading to a price drop. The market leader subsequently fell from $65,000 to below $62,000 and then to $60,500. This decline brought liquidations, with $290 million evaporating from both long and short positions in the last 24 hours as of the time of writing.
Bitcoin Price Drops
The recovery rally before the FOMC meeting and positive July CPI data had contributed to the rise. However, the long-discussed interest rate cut did not come again, shifting focus to September. As a result, excitement in the cryptocurrency market waned, leading to a price drop.
On the other hand, the weak US employment report pointing to July triggered a decline in bond yields and the dollar. Generally, this situation is known to cause an increase in risky assets like stocks and Bitcoin, but things did not happen that way. Initially, Bitcoin’s price rose above $65,000. However, things changed later, and the price fell below $62,000.
QCP Capital analysts said the following on the matter:
The downward trend created by high unemployment figures also affected crypto with increasing recession expectations. VIX rose above 28 today, reaching its highest level since the regional banking crisis on March 23. “Despite the jumpy price movements we’ve seen in the last few days, the crypto volatility market indicated expectations that price volatility would calm down towards summer.”
One of the main reasons for the downward movement was Genesis Trading’s transfer of over $1.5 billion in Bitcoin and Ethereum. Due to the uncertain atmosphere, BTC fell by 2.2%, and ETH experienced a 2.5% correction in the same period.
Bitcoin and Market Liquidations
According to data provided by CoinGlass, Bitcoin liquidations worth a total of $90 million were observed. Following Bitcoin, Ethereum and Solana (SOL) also saw liquidations of $80.21 million and $20.86 million, respectively.
On the other hand, exits from Bitcoin exchange-traded funds (ETFs) once again highlighted the existing uncertainty in the market. According to data provided by SoSoValue, the total net outflow on August 2 reached $237 million. It was noted that Grayscale ETF GBTC saw a net outflow of $45.94 million, Fidelity ETF FBTC $104 million, and BlackRock ETF IBIT $42.81 million in a single day.
