VBIT Hong Kong
On Monday morning, 5 August 2024, Bitcoin fell sharply amid severe global market volatility, breaking below US$50,000. Over the preceding 24 hours, Bitcoin had plunged 20%, while the wider cryptocurrency market lost nearly 16%. According to CoinGecko, Ether fell 25% over the same period.
Cryptocurrencies, equities and futures all experienced severe volatility that day. On 5 August 2024, the Nikkei 225 fell 12.40% to close at 31,458.42. The Bank of Japan had raised interest rates again on 31 July 2024.
1. Liquidations exceed US$1 billion
According to CoinGlass, total liquidations over the preceding 24 hours reached US$1.03 billion, including US$894.03 million in long positions. Nearly US$150 million was liquidated in the preceding hour alone.
2. Altcoins also suffer
Major altcoins BNB, XRP and Solana fell 22.3%, 20% and 20%, respectively, over the preceding 24 hours. Recession fears drove a collapse in Asian markets.
3. Understanding the market turmoil
Disappointing US jobs data heightened fears of a recession in the world's largest economy and increased expectations of multiple Federal Reserve rate cuts. Tokyo led a sharp decline in Asian equities on Monday. The sell-off reflected substantial Wall Street losses, where major technology companies such as Amazon and Microsoft were hit by concerns that the year's AI-driven rally had gone too far.
The initial report released by the US Bureau of Labor Statistics on 2 August 2024 showed that nonfarm payroll employment increased by 114,000 in July, sharply below June and well short of expectations. Unemployment rose to its highest level since October 2021.
The cryptocurrency changes and liquidation totals above are snapshots reported at the time. Data providers may use different observation periods and market coverage; these figures are not live prices.
Historical sources: Historical Nikkei 225 data · Bank of Japan decision, July 2024 · Initial US employment report for July 2024
