Bitcoin crashed 6% in 24 hours, but there’s nothing wrong with that

Over the past 24 hours, Bitcoin has lost more than 6% of its value and reached a minimum price of $58,151; second-largest cryptocurrency Ethereum posted a less sharp decline of 4.5% to $2,469.50. Analysts talk about standard fluctuations in assets and do not see a tragedy in what is happening.

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The futures market recorded liquidations of long Ethereum positions in the amount of $93.52 million – traders on centralized exchanges sell assets at the market price to pay off debts; positions in bitcoins were liquidated for $85.93 million. The asset dumps associated with leverage that occur in such scenarios are a signal to buy, experts say: as expected, the cheaper bitcoin will be bought up, but the attitude towards Ethereum has not yet changed to a positive one.

Image source: coindesk.com

Despite recent fluctuations, Bitcoin shows growth of 39% over the year; Ethereum’s growth is a more modest 7%. August is traditionally a quiet month for the risk asset market in general and cryptocurrencies in particular, but fluctuations still cannot be ruled out. In addition, Bitcoin is still firmly in the safe range it entered in April – from $55,000 to $70,000.

An additional negative factor for Bitcoin was the difficulties in the legal proceedings against US presidential candidate Donald Trump, who is a supporter of cryptocurrencies. His opponent has not yet made any statements about electronic money.