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Bitcoin drops below $50,000 for the first time since February

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  • Crypto Stocks Coinbase and MicroStrategy were among the hardest hit in premarket trading.
  • Bitcoin down to $49,111.10 at one point its lowest level and fist time under $50,000 since February after trading close to $70,000 week before
  • The move follow a broader market sell off that start last week when a weaker than anticipated July jobs report renewed investor fears of recession.

Cryptocurrencies amid global market sell off spurred by recession danger.

The price of bitcoin down over 13% on Monday to $50,963.57 according to Coin Metrics.

At one point it down to $49,111.10 its lowest level and first time under $50,000 since February.

Crypto stocks were among hit in premarket trading. Coinbase took a 13% dip. MicroStrategy slid nearly 17% Mining stocks double digit losses too.

The move follow a broader market sell off that start last week when a weaker than anticipated July jobs report renewed investors fear of a recession.

Japan stocks entered a bear market Monday after plunging over 12% overnight its worst one day sell since 1987.

Bitcoin has lost almost 18% since Saturday. A week before on July 20 it climbed as high as $69.982.

Ether losses were even steeper. The crypto asset dropped 17% to $2,271.21 bringing its three day loss to 24% and erasing its 2024 again.

“Thirty percent slumps as scary as they are pair for the course during bull markets and bitcoin bounced back more than $50,000.

“But make no mistake we are in a choppy volatile market environment  the moment to turn bullish will be when bitcoin retakes its 200 day moving average which tells us if we are in a bull or bear market $61,500.

The move follow a broader market sell off that start last week. When a weaket than anticipated july jobs report renewed investor fears of recession.

The tech heavy Nasdaq Composite entered a correction.

Japan stocks entered a bear market Monday after plunging over 12% overnight one day sell off since 1987.

Crypto traders faced mega losses as mega cryptocurrencies including Ether and Bitcoin experienced a sharp downfall resulting in more than $1 billion in liquidations.

Crypto investors and traders lost $1.08 billion in total liquidations amid falling prices of mega cryptocurrencies including Ether, Solana and Bitcoin.

 On Aug 5 crypto market prices saw a mega decline owing to weakening global economy which was catalyzed further by crash of stock market of Japan.
In the process almost 300,000 crypto traders were liquidated from leveraged positions or collateral trades according to data from Coinglass.
Traders await a comeback of the bull run hackers found a chance for profits and bear market.
Ether lost more than 20% of its value from $2,760 to 42,172 funds linked to a hack on crypto bridge Nomad in Aug 2022 were used to buy 16,892 Ether.
As Bitcoin prices crashed from almost $65,000 to $50,000 mark traders holding long position on crypto exchanges lost over $315 million in under 24 hours.
On other hands shorters lost $62.23 million in process.
Traders with Ethereum long positions lost a total of $305 million while traders holding short position lost over $50 million.
Long positions across all crypto assets lost over $930 million in 24 hours while shorters lost $163.45 million
Other crypto liquidations were recorded on OKX Huobi, BitMEX and Bybit among other exchanges.
Bitcoin has been affected by range of factors since hitting a record of $73,798 in March.
US political flux as pro crypto Republican Donald Trump and Democratic opponent vice president Kamala Harris has yet to detail a digital asset policy position lock horns in president race.
US exchange traded funds for Bitcoin suffered their largest outflows in about three months on Aug 2.
The products will attract dip buyers when they resume trading or witness a deeper efflux.
Digital assets are victim in part of unwinding yen carry trade as speculators adjust to higher interest rates in Japan.
Those investors are fighting a drastic increase in hedging cost based on the volatility in US dollar Japanese yen trading pair “Hughes said.

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