Bitcoin (BTC-USD) trading volumes hit a record high following the latest Bitcoin halving, even as the broader crypto market took a nosedive. The chaos in the market saw Bitcoin transactions on exchanges skyrocket, reaching unprecedented levels. This trading frenzy was driven by both panic selling and opportunistic buying, as the price of Bitcoin dipped below $50,000.
Crypto Sell-offs and Bargain Hunts
On August 5th, many crypto traders faced substantial losses after the prices of major cryptocurrencies like Bitcoin, Ethereum (ETH-USD), and Solana (SOL-USD) plummeted. This led to a wave of liquidations, with some investors offloading their Bitcoin holdings to cut their losses, while others seized the chance to buy the dip. According to Blockchain.com, the total USD value of Bitcoin trading on major exchanges exceeded $1.14 billion on August 6th, a figure not seen since March.
Bitcoin and Ethereum on Sale
Amid the chaos, Bitcoin and Ethereum prices dropped by more than 10% and 20%, respectively. This created a buying opportunity for some, including crypto hackers who used stolen funds to purchase heavily discounted Ethereum. The Nomad Bridge exploiter, for example, used 39.75 million Dai tokens from a previous heist to buy 16,892 ETH.
Blockchain investigation firm PeckShield noted that the hacker also transferred 2,400 ETH, worth around $7 million, to Tornado Cash. Such maneuvers highlight the dark side of the crypto world, where market dips can provide opportunities for illicit gains.
Analysts Weigh In
Despite the tumult, some analysts believe the worst might be over. Bitcoin’s price rebounded by $4,000 to nearly $55,000 following the opening of the U.S. trading session. Bitcoin analyst Skew noted on X, “No actual chaos yet,” suggesting that while the market is volatile, it hasn’t reached a full-blown crisis.
Similarly, Rekt Capital noted on X that the sell-side volume had reached levels indicative of a potential price reversal, saying, “Bitcoin hasn’t seen this level of sell-side volume since the Halving in mid-April 2024.” This hints at seller exhaustion, which could lead to a stabilization or even a recovery in Bitcoin’s price.
Global Market Impact
The impact of the crypto crash was felt globally. While U.S. markets managed to avoid severe losses, the S&P 500 and Nasdaq Composite Index were down by 3% and 3.7%, respectively. Japan’s Nikkei 225, however, experienced its worst two-day losses in history.
According to CoinTelegraph, The Kobeissi Letter blamed the Japanese yen carry trade for exacerbating market pain. This complex financial strategy, when it goes south, can have ripple effects across global markets.
What Is Bitcoin’s Price?
At the time of writing, Bitcoin is sitting at $55,821.64, marking an 11.3% decline over the past 5 days.
