Bitcoin News Today: Bitcoin Drops 6.2% as Crypto Market Loses $25 Billion in 24 Hours

The global cryptocurrency market entered a bearish phase on August 2, with Bitcoin and most altcoins under significant pressure. Bitcoin ($BTC) dropped to $112,605.2, down from its recent peak near $120,000, amid bearish technical indicators such as three consecutive bearish candlesticks and a diverging MACD, signaling deteriorating momentum [1]. The broader market mirrored Bitcoin’s performance, with the overall crypto market capitalization decreasing by 2.53% in the past 24 hours, and the 24-hour trading volume dropping 25.25% to $151.66 billion [3].

Ethereum ($ETH), the second-largest cryptocurrency, fell by 2.25% to $3,442.34, though it maintained a market dominance of 11.5% [3]. Bitcoin’s dominance remained stable at 61.4%, with analysts observing that a move above 63% could indicate a stronger bull case for Bitcoin over altcoins [4]. Meanwhile, the DeFi sector saw a slight decline, with total value locked (TVL) dropping by 0.63% to $131.171 billion, and top DeFi protocols like Aave also experiencing a modest decline [3].

In contrast, the NFT space bucked the downward trend, with total sales volume surging by 50.28% to $23.39 million. The Courtyard NFT collection led the charge, with a 25.22% increase in sales, reaching $1.78 million [3]. Despite these gains, the broader market remains in a fragile state, with low trading volume and weak price action raising concerns about further declines [2].

Several smaller tokens managed to outperform the market. Port Finance ($PORT) surged by 952.47%, reaching $0.003963, while SORA GROK ($GROK) jumped 603.78% to $0.3247 and Mubarak Trump ($TRUMP) rose 463.59% to $0.002275 [3]. However, these gains came against a backdrop of rising selling pressure, as on-chain data showed widespread liquidation and Binance’s daily inflows reaching nearly 7,000 BTC [5].

The red tide also affected institutional activity. Sharplink Gaming added $53.6 million worth of Ethereum to its holdings, increasing its total ETH balance to 480,204 tokens [3]. El Salvador continued to build its Bitcoin reserves, adding seven more BTC to bring its total holdings to 6,256.18 BTC, valued at approximately $708.5 million [3].

Unfortunately, the week also saw a high-profile phishing attack where a victim lost $908,000 over 15 months due to unrevoked permissions, highlighting the growing risks in the crypto space [3]. Analysts remain cautious, noting that the current environment bears resemblance to earlier bearish cycles, with low volume and weak price action serving as warning signs for further declines [2].

Despite the downturn, some market participants are watching for signs of an altcoin season, similar to 2021, which could emerge if Bitcoin consolidates. However, with hodlers actively selling and market sentiment remaining fragile, the coming days will be crucial in determining whether this is a short-term correction or the beginning of a more extended bearish phase [8].

Source:

[1] TalkMarkets (https://talkmarkets.com/content/financial/bitcoin-and-altcoins-drop-abruptly-as-the-bears-take-control?post=513054)

[2] AInvest (https://www.ainvest.com/news/bitcoin-news-today-bitcoin-plummets-0-98-bearish-indicators-diverging-macd-signal-deepening-sell-2508/)

[3] CoinMarketCap (https://coinmarketcap.com/community/articles/688fc172c2ab4f6a22e6a788/)

[4] BlockNews (https://cryptorank.io/news/feed/4f370-altcoin-season-brewing-xrp-pi-coin-shib-show-flickers-as-bitcoin-slips-below-113k)

[5] Cointelegraph (https://cointelegraph.com/news/bitcoin-speculators-bleed-binance-daily-inflows-near-7k-btc)

[6] NewsBTC (https://www.newsbtc.com/news/bitcoin/slow-and-steady-bitcoins-current-rise-feels-different-study/)

[7] 99Bitcoins (https://99bitcoins.com/news/presales/research-crypto-coin-posting-20-jump-today-rsc-pumps-on-red-market-desci-coming-back/)

[8] Medium (https://medium.com/@dominalt/99-of-crypto-traders-will-get-trapped-major-u-s-crypto-news-d545bc04b433)