Crypto Price Today: Bitcoin and Ether Hit Hard by Economic Turbulence, Altcoins Follow Suit

Bitcoin on Monday, August 5, reflected a price drop of 10.98 percent on international exchanges, bringing its price to $54,073 (roughly Rs. 45 lakh).

Written by Radhika Parashar, Edited by Siddharth Suvarna | Updated: 5 August 2024 11:42 IST

Crypto Price Today: Bitcoin and Ether Hit Hard by Economic Turbulence, Altcoins Follow Suit

Photo Credit: Pixabay/ Dean Crosby

The crypto market valuation has dropped to $1.89 trillion

Highlights

Cardano, Tron saw losses
Price dips also reflected by Avalanche, Shiba Inu
Dogefi, Augur managed to retain minor gains

From US' presidential tussle between Donald Trump and Kamala Harris to Japan's stock market crash – several macro-economic factors have been impacting the prices of crypto assets. Bitcoin on Monday, August 5, reflected a price drop of 10.98 percent on international exchanges that brought its trading value to $54,073 (roughly Rs. 45 lakh). On Indian exchanges meanwhile, Bitcoin registered a similar percentage of loss – bringing its price to $61,560 (roughly Rs. 51 lakh).

“Investors, fearing a prolonged bearish trend, are reacting with increased volatility and panic. The price decline has triggered the liquidation of approximately $600 million (roughly Rs. 5028 core) in leveraged long positions. This highlights the inherent risks of leveraged trading in the crypto space, as sudden price movements can lead to substantial losses for investors caught in unfavorable positions,” the CoinSwitch Markets Desk told Gadgets360, commenting on the market status.

Ether's loss on Monday was higher in comparison to Bitcoin. At the time of writing, ETH's price point stood at $2,307 (roughly Rs. 1.9 lakh) after the asset logged a loss of over 20 percent in the last 24 hours. This price point for Ether is almost the same on national and international exchanges.

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“While the sudden drop is alarming, history suggests swift market recoveries are possible. The Bank of Japan's interest rate hike triggered this broad-based correction, impacting both crypto and traditional markets,” Avinash Shekhar, Co-founder and CEO, Pi42 told Gadgets360.

Tether, Binance Coin, Solana, Ripple, Dogecoin, and Cardano recorded losses alongside BTC and ETH on Monday.

Tron, Avalanche, Shiba Inu, Polkadot, Chainlink, Leo, and Litecoin also joined the list of loss-making cryptocurrencies on Monday.

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The overall market cap of the crypto sector dropped by a notable 12.27 percent in the last 24 hours. With this, the crypto market valuation has dropped to $1.89 trillion (roughly Rs. 158,39,844 crore), according to data by CoinMarketCap.

“The crypto market went down by 15-20 percent in the last four days, driven by heavy selling in global stocks and significant declines in indices. Geopolitical tensions between Israel and Iran, as well as the movement of BTC worth $1 billion (roughly Rs. 8,380 crore) by Genesis for in-kind repayments to creditors, have also contributed to the decline,” CoinDCX told Gadgets360.

Judging from historical trends in the crypto market, before the market forms a true bullish drive, it needs to experience a sharp decline to reduce the long positions of the contract in order to reduce the selling pressure for future rises.

“This is a key factor in the rapid rise of the market, observers can continue to pay attention to changes in the macro market including the panic index indicators. At present, the core key to affecting the market trend is the sentiment index. If VXX starts to fall, it means that the panic sentiment has eased,” Gracy Chen, CEO at Bitget told Gadgets360, commenting on the market situation.

Meanwhile, cryptocurrencies that saw small gains on Monday included Augur, and Dogefi.

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Cryptocurrency Prices across Indian exchanges

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Further reading: Cryptocurrency, Bitcoin, Ether, Qutm, Wrapped Bitcoin, Zcash, Tether, USD Coin, Ripple, Binance USD, Binance Coin, Cardano, Polygon, Solana, Polkadot, Dogecoin, Shiba Inu, Litecoin, Uniswap, Tron, Monero, Dash, Bitcoin Cash, Flex, Cartesi, Braintrust, Kishu Inu, Circuits of Value

Radhika Parashar

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Radhika Parashar is a senior correspondent for Gadgets 360. She has been reporting on tech and telecom for the last three years now and will be focussing on writing about all things crypto. Besides this, she is a major sitcom nerd and often replies in Chandler Bing and Michael Scott references. For tips or queries you could reach out to her at RadhikaP@ndtv.com. More