The cryptocurrency market has taken a big hit. Bitcoin has dropped 17% to a five-month low of about $49,700. The panic sell caused over $1 billion in liquidations, with Bitcoin buyers losing the most money.
Over 278,000 traders were hit by the sell-off. One Huobi liquidation order worth $27 million for a BTC/USD trade was one of them. There is also chaos in the broader financial market because of global economic and geopolitical factors, such as Japan’s decision to raise interest rates, disappointing nonfarm payroll data in the US, the conflict between Israel and Iran getting worse, and reports of Jump Trading’s speculative crypto sales.
Managing Director of HashKey Global Ben El-Baz talked about the recent drop in the market and said that people may not need to be so worried because they will be able to think again once their initial emotional response wears off.
It’s clear that investors are very worried about the future of the market because the Crypto Fear and Greed Index has dropped into the “fear” area.
MicroStrategy plans to raise funds for business projects and increase its Bitcoin holdings by selling up to $2 billion worth of shares. Despite a loss in Q2 2024, the company bought 12,222 Bitcoins, increasing its total to 226,500. The move is prompted by the U.S. government’s Bitcoin sell-off and weak economic indicators. Michael Saylor, known for his Bitcoin support, is involved in the plan.
