The new trading week opened with volatility in the crypto market as Bitcoin retreated to $115,000 after hitting a historical high.
Sharp Drop of Bitcoin
Bitcoin began the week by dropping from its all-time high of $124,496 to the level of $115,000, marking nearly an 8% decline. The lowest price reached was $114,700 before stabilizing around $115,000.
Liquidations and Their Causes
The drop in Bitcoin occurred alongside a wave of forced liquidations sweeping through the crypto market. Over $500 million in positions were cleared within 24 hours, with Bitcoin and Ethereum leading the sell-off. These liquidations were triggered as leveraged traders were forced to exit their positions, adding downward pressure to the market.
Macroeconomic Influence on the Market
The sell-off came as investors reassessed the macroeconomic environment. Fresh inflation data raised questions about potential shifts in central bank policy, creating uncertainty for risk assets like crypto. Many traders already expected August to be volatile, as this month has historically been weak for financial markets.
Considering the recent drop, many experts view this retreat as a healthy cooldown in the current uptrend. The key levels to watch remain $115,000 support for Bitcoin and $4,200 for Ethereum, and their further movement will determine the market's near-term outlook.
