Bitcoin News Today: Bitcoin Falls 5.6% as Geopolitical Tensions and Weak Jobs Data Trigger $905M in Liquidations

Bitcoin and major cryptocurrencies have experienced a sharp price correction amid heightened geopolitical tensions and disappointing U.S. economic data, leading to significant market liquidations. Over the past week, Bitcoin fell 5.6% from its recent peak to $113,411, while Ethereum and XRP dropped by 10.5% and 10.2%, respectively. Total liquidations exceeded $905 million, with long positions accounting for more than $823 million, indicating widespread profit-taking and increased market volatility [1].

The decline has been attributed to a combination of factors, including a weaker-than-expected U.S. jobs report and new tariffs announced by U.S. officials. Analysts have highlighted that these developments have triggered risk-averse behavior among investors, particularly in volatile assets like cryptocurrencies. Escalating military tensions and political maneuvering have further contributed to the uncertainty, reinforcing the downward pressure on crypto prices [1].

Market observers suggest that the current sell-off could continue through August and September, with Bitcoin potentially dropping near $80,000 before a possible recovery in the fourth quarter of 2024. According to analysts at Glassnode, a price fall below $110,000 could intensify the downward momentum and trigger further liquidations. However, some predictive models offer a more optimistic outlook. Myriad’s analysis suggests a greater than 53% probability that Bitcoin will reach a new high of $125,000 rather than declining to $105,000, reflecting continued long-term confidence in the asset despite recent turbulence [1].

The liquidation data from CoinGlass underscores the influence of macroeconomic factors and trader sentiment on price movements. The significant shift in market positioning highlights the fragility of bullish bets in the current environment. While short-term uncertainty remains high, the data and expert forecasts indicate that the market may stabilize and recover in the coming months.

Despite the volatility, the broader trend of digital assets as a store of value and hedge against macroeconomic instability continues to attract investor attention. The current correction, while sharp, aligns with historical patterns of market cycles in crypto, where prolonged bearish phases are often followed by rebounds driven by renewed institutional interest and macroeconomic shifts [1].

Source: [1] Bitcoin Faces Potential Downturn Amid Global Unrest and Rising Liquidations, Analysts Suggest Possible Recovery Later (https://en.coinotag.com/bitcoin-faces-potential-downturn-amid-global-unrest-and-rising-liquidations-analysts-suggest-possible-recovery-later/)